This company strength is their partner for building materials....cheaper than other competitor, the biz pipeline in term of GDV looks normal....not mammoth size (yet?)
what fully subscribed ?...don't be tricked ...! every body got 100 % what they applied....what ever amount you applied - you got it Disaster on listing day......SENHENG 2.0 , at least another kaput DXN
1. Radium is due for listing on 31st May at an IPO price of 50sen per share. The company is selling 868m new shares by public issue. There is no offer for sales by principle owners and major share holders.
2. The enlarged issued share capital after listing is 3.46b shares. At 50sen a share the market capital immediately upon listing is RM1.73b.
3.To facilitate the listing exercise, the initial capital investment of RM42.4m by the owners was restructured and enormously enlarged to 2.6b shares at 50sen a share.
4. This also means the listing exercise has enriched the owners from 42m to Rm1.3b. If this is not crazy, what is? 5.While Page 11 of the prospectus highlights the enlarged issued capital it did not describe the process of enlargement done magically.
6. Subscribers could only guess the enlarged capital was attained through capitalization of retained earnings and revaluation surplus.
7. According to the prospectus, the EPS of the enlarged capital of 3.46b shares is 2.93 sen. The IPO price of 50 sen would value Radium at a PE multiple of 17x. The Net tangible assets of Radium upon listing is 23 sen. Hence, it is selling at 2.17x price to book value.
8.I am of the opinion that at PE multiple of 17x ,the company is more than fully value compare to other newly listed companies that traditionally command between 9x to 11x price earnings. With this inordinately high PE and disproportionately priced IPO, the promoters take all the money and leave nothing on the table.
9. Two (2) times price to book value is excessively high as many well known and great construction companies are trading well below book value.
10. Therefore Radium's valuation is at its peak even at the onset and post- listing.
11.Considering all the above, it is not surprising that the IPO response is tepid. Applications had closed and balloting done and issuing house had announced 100% success rate which is unique and peculiar.
12. I think the upside potential is very limited on listing day. It would be a blessing if it does not fall below IPO price and end up with a red histogram on the candlesticks chart.
13. This is my personal perception and it is not intended to dampen the investing spirits and passion of your successful application and allotment. 14 Good luck and all the best
Radium Bhd has many good land banks bought at very good prices. They have the experience in getting best deals as shown in their previous developments in Setapak & Genting Klang.
The revenue had grew from RM472 million in 2019 to RM563 million in 2021, up around 19%. No significant growth....? You need to think before you say, cytew. Numbers don't lie
1. RADIUM has just announcement its 1st.Q result. The company generated a revenue of RM25.2m and reported RM2.93m profit for the period ended Mar 2023.
2.It is quite interesting and somewhat incredible to note that by Wednesday this company a property developer with inordinately tiny revenue basing on its filings with Bursa will command a market capital of RM1.73B upon listing on 31st Mar.
3. The enlarged issued share capital is 3.46b shares and the IPO price is 50 sen. Market capital upon listing 1.73b Happy trading 29/3/23
Will the profit be much better in the subsequent quarters? If we annualize the 1st Quarter profit of $2.936M; with enlarged share capital of 3.468B shares, EPS at 0.339 sen and PE of ~148 times referencing IPO price of $0.50.
Comparatively, the audited revenue and profit for FPE2022 in the Prospectus are $302.011M and $92.083M respectively.
Radium's low revenue and low profit for Q1 is expected. It's in the prospectus, they have completed all the projects in hand. Left one more Residensi Vista Sentul, 100% sold, 90% completion, to be completed by 2Q 2023. Launched a new project called Chancery Residences in Feb 2023. Projects in the pipeline yet to be launched has a GDV of RM3.36b. Analysts reports have already highlighted 2022f and 2023f revenue gonna drop, and only pick up in 2024.
The Board of Directors of Radium (“Board”) wishes to announce that Radium, had on 29 May
2023, entered into a Memorandum of Understanding (“MOU”) with MyCharge EV Sdn Bhd
(“MyCharge EV”) for the purpose of collaborating with each other in an effort to explore the
possibility of venturing/developing renewable energy collaboration that complement each other
which at the same time align with Radium’s vision to promote environmental and business
sustainability (“Collaboration”).
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 2985 views | 2 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main 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....
MrAction
118 posts
Posted by MrAction > 2023-05-25 15:36 | Report Abuse
REd then good lah, below 0.50 is a bargain