PETALING JAYA: Private equity firm Ekuiti Nasional Bhd (Ekuinas) has firmly said it is holding on to its investment in oil and gas (O&G) service provider Icon Offshore Bhd.
It said in a statement that it saw its current 42.3% stake in Icon as a core holding and had no plans to divest the shares.
Ekuinas added that similar to other private equity firms, it would eventually divest its investment at the end of its horizon period, which was typically between three and five years.
It said it would only divest its stake when it believed the value of its investment had been maximised.
“Given the cyclical nature of the O&G industry, Ekuinas currently sees significant long-term value in Icon and is committed to supporting the company to judiciously grow the business further and strengthen its position as the largest pure play offshore support vessel (OSV) company in the country,” it said.
StarBiz had reported yesterday that selling in Icon shares came from its promoters, namely, Ekuinas and Icon’s chief executive officer Jamal Yusof, following the end of a six-month lockup period imposed.
Ekuinas and Jamal collectively own some 52% of Icon. Ekuinas’ holding in Icon is via its unit Yayasan Ekuiti Nasional’s two entities, Sempena Focus Sdn Bhd (2.41%) and Hallmark Odyssey Sdn Bhd (42.28%). Jamal owns 5.02% of the company.
It added that it believed in the long-term potential of the O&G sector, as it was one of the core economic drivers of the economy.
Ekuinas sees the current downturn within the global O&G industry as an opportunity to invest in the sector, given the relatively low asset values prevailing in the market.
As at Monday, the stock was down 19 sen or 19.5% to 78.5 sen. Icon was the most active counter of the day, with 68.76 million shares being traded.
Yesterday, Icon shares shed a further four sen to 74.5 sen, with 61.9 million shares being done. At its current share price level, it is almost 60% lower than its initial public offering (IPO) price of RM1.85.
Ekuinas successfully listed Icon, one of its investee companies, on June 24, 2014, selling a 44% stake at 24 times price earnings ratio. This is based on its IPO price of RM1.85 and earnings per share of 7.61 sen last year.
For the third quarter ended Sept 30, 2014, Icon’s net profit was down 16.89% to RM18.95mil on the back of a 22.7% decrease in revenue to RM79.75mil.
According to an Infield Systems report, Icon is the largest pure play OSV provider in Malaysia and one of the largest in South-East Asia by fleet size.
It owns and operates 32 Malaysian-flagged vessels and has one of the youngest vessel fleets in the region, with an average age profile of five years, against South-East Asia’s industry age average of 11 years.
syndicate oh syndicate, what's your action plan today? tell-lah. push then down or push down then up or ...... flattish to let contra kakis go holland to celebrate xmas first!
please don't invest on the warrant, it's rm1.4 exercise price the mother is about half of the exercise price, at most next year it can only reach rm1.2 get the mother, at least if there's any dividend/bonus issue you're entitled for it
apart of the high gearing, so far this company is quite profitable but then again, see how's the shark playing this counter la it has been downtrend for months despite the quarter results are good for 3 quarters falling so long d, I reckon now is the ground level for this falling stock, let's wait and see
0.725 susah dapat lo. I got it at 0.725 yesterday, but sold at 0.76 this morning. Now queue again at 0.725 belum dapat lagi like you. Equinas not selling so is good or bad? Looks like sellers are done.....but 64m dollar question will it move up??????????
If tat means, if the company sell all the company's assets it worth RM0.9071 per share but the current market price is RM0.735. Please correct me if i'm wrong
Volume half of yesterday, good sign. Friday if contra selling is well absorb , next week should see a rebound. The share will turn up, everyday new low now, means new high everyday will come la. This is a stock mkt, it has up and downs
trading below naps.... can only mean there are adverse expectation coming up... coupled by the fact that the CEO sold shares, but good news is that tabung haji seems to be acumulating
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 14453 views | 12 d ago
0:43
M & A Value Partners IPO Equity Fund
MQ Trader 4768 views | 1 mo ago
0:16
MQ Market Updates - 3 September 2024
MQ Trader 105 views | 16 h ago
0:15
MQ Market Updates - 2 September 2024
MQ Trader 87 views | 1 d ago
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
rlch
4,140 posts
Posted by rlch > 2014-12-24 10:01 | Report Abuse
Ekuinas: No plan to sell Icon stake
Wednesday, 24 December 2014
By: WONG WEI-SHEN
PETALING JAYA: Private equity firm Ekuiti Nasional Bhd (Ekuinas) has firmly said it is holding on to its investment in oil and gas (O&G) service provider Icon Offshore Bhd.
It said in a statement that it saw its current 42.3% stake in Icon as a core holding and had no plans to divest the shares.
Ekuinas added that similar to other private equity firms, it would eventually divest its investment at the end of its horizon period, which was typically between three and five years.
It said it would only divest its stake when it believed the value of its investment had been maximised.
“Given the cyclical nature of the O&G industry, Ekuinas currently sees significant long-term value in Icon and is committed to supporting the company to judiciously grow the business further and strengthen its position as the largest pure play offshore support vessel (OSV) company in the country,” it said.
StarBiz had reported yesterday that selling in Icon shares came from its promoters, namely, Ekuinas and Icon’s chief executive officer Jamal Yusof, following the end of a six-month lockup period imposed.
Ekuinas and Jamal collectively own some 52% of Icon. Ekuinas’ holding in Icon is via its unit Yayasan Ekuiti Nasional’s two entities, Sempena Focus Sdn Bhd (2.41%) and Hallmark Odyssey Sdn Bhd (42.28%). Jamal owns 5.02% of the company.
It added that it believed in the long-term potential of the O&G sector, as it was one of the core economic drivers of the economy.
Ekuinas sees the current downturn within the global O&G industry as an opportunity to invest in the sector, given the relatively low asset values prevailing in the market.
As at Monday, the stock was down 19 sen or 19.5% to 78.5 sen. Icon was the most active counter of the day, with 68.76 million shares being traded.
Yesterday, Icon shares shed a further four sen to 74.5 sen, with 61.9 million shares being done. At its current share price level, it is almost 60% lower than its initial public offering (IPO) price of RM1.85.
Ekuinas successfully listed Icon, one of its investee companies, on June 24, 2014, selling a 44% stake at 24 times price earnings ratio. This is based on its IPO price of RM1.85 and earnings per share of 7.61 sen last year.
For the third quarter ended Sept 30, 2014, Icon’s net profit was down 16.89% to RM18.95mil on the back of a 22.7% decrease in revenue to RM79.75mil.
According to an Infield Systems report, Icon is the largest pure play OSV provider in Malaysia and one of the largest in South-East Asia by fleet size.
It owns and operates 32 Malaysian-flagged vessels and has one of the youngest vessel fleets in the region, with an average age profile of five years, against South-East Asia’s industry age average of 11 years.