Background

Minox International Group Bhd (MINOX) is principally involved in the distribution of stainless steel sanitary valves, tubes & fittings, installation components & equipment, rubber hoses under the “MINOX” brand and other related products.

IPO Statistic

The IPO entails a public issue of 90,000,000 new ordinary shares, and an offer for sale of 18,000,000 shares at an IPO price of RM0.25/share.

Public Issue:

• 18,000,000 new shares for application by the Malaysian public;

• 10,800,000 new shares for application by eligible parties;

• 45,000,000 new shares for private placement to Bumiputra investors approved by MITI; and

• 16,200,000 new shares by way of a private placement to selected investors.

Main Competitive Advantages

1. Established stainless steel sanitary player;

2. Able to offer a wide range of sanitary products; and

3. Extensive sales and distribution network.

Valuation

At an IPO price of RM0.25/share, MINOX is priced at a trailing PER of 11.9x FY22 core EPS. We value the company at 11x CY24 EPS, arriving at a fair value of RM0.27/share.

Source: TA Research - 2 Oct 2023