Background

Incorporated in 1997, Life Water Berhad (LWB) is primarily involved in the manufacture of bottled water and carbonated drinks in Sabah. The group’s operations are further supported by other business activities, including plastic packaging production and delivery and distribution centers.

IPO Statistic

The IPO involves an offering of up to 126.0mn shares in conjunction with the listing on the Main Market of Bursa Malaysia. This includes a public issue of 97.6mn new shares and an offer for sale of up to 28.4mn existing shares. Of the total public issue of 97.6mn shares, 23.7mn will be offered to the Malaysian public, 14.2mn to eligible persons, 59.2mn to Miti-approved Bumiputera investors, and 0.6mn to selected investors, at an IPO price of RM0.65 per share. Collectively, these share offers represent 26.6% of the group’s enlarged issued share capital.

Competitive Advantages

1. Leading Brand in the Sabah Market
2. Wide Distribution Network
3. Experienced Management Team

Valuation

LWB is valued at a PER of 10.9x FY24 EPS, based on an IPO price of RM0.65 per share. We assign a fair value of RM0.87/share to LWB, using a PER of 13.3x for its CY25 EPS, which aligns with the simple average PER of comparable companies in the beverages sector. Not Rated

Source: TA Research - 28 Oct 2024