ICAP (5108) - ICAPITAL.BIZ BHD IPO Prospectus

For Malaysians who have been crying over the weakening Ringgit and rising cost of living, they have right in front of their eyes a precious Malaysian listed fund that has not only offered them currency protection but also superior wealth creation.

Despite a very tough and turbulent environment, icapital.biz Berhad has achieved a very strong performance with its share price outperforming the MSCI Malaysia in US$ by a huge margin in the last 1-year and 3-year periods.

The share price of icapital.biz Berhad has also outperformed the S&P 500 and NASDAQ, two top performing indices dominated by AI stocks like Nvidia, Meta, etc , in US$ in the same 1-year and 3-year periods.

This very strong performance of icapital.biz Berhad in US$ terms certainly did not happen by chance. It is the result of the persistent hard work and heart work put in over the years by Capital Dynamics and myself as the Designated Person of icapital.biz Berhad.

It is also a result of your Fund Manager and Designated Person patiently and deliberately sticking to its time-proven Bamboo value investing philosophy, despite being continuously badgered and disrupted by one or two foreign wrecking balls.

icapital.biz Berhad still has around RM80 million cash. With Capital Dynamics’ time-proven value investing philosophy, and icapital.biz Berhad still undervalued, it remains an excellent time to invest more in this truly low-risk, high-return investment.

A jump of 49.3% in its share price as the Malaysian stock market plunged nearly 18% in the last 3 years is indeed low risk and high return.

i Capital.biz Berhad 3Q2024 Report

2 months ago

TheContrarian

Posted by Thirai Thiraviam > 1 week ago | Report Abuse

JohnD0ugh, you say, or quote TTB saying, that “I expect the KLCI to rise to 2,500 to 3,000 over the next 3 – 5 years.” What is the basis for this increase? While KLCI is still undervalued based on PER, and reverting to the historical mean should push the index up, don't you think 60% — 100% increase is rather too optimistic?

Eh, @Thirai , you didn't know that John is TTB?

2 months ago

No wonder KC Chong has this to say about TTB: It helps if he has more humility.

JohnD0ugh
For Malaysians who have been crying over the weakening Ringgit and rising cost of living, they have right in front of their eyes a precious Malaysian listed fund that has not only offered them currency protection but also superior wealth creation.

Despite a very tough and turbulent environment, icapital.biz Berhad has achieved a very strong performance with its share price outperforming the MSCI Malaysia in US$ by a huge margin in the last 1-year and 3-year periods.

The share price of icapital.biz Berhad has also outperformed the S&P 500 and NASDAQ, two top performing indices dominated by AI stocks like Nvidia, Meta, etc , in US$ in the same 1-year and 3-year periods

2 months ago

EngineeringProfit

Runnnnnnnnnnnnnnnnnnnnnnnnnnnnn

2 months ago

Price please drop further, I'm hungry

2 months ago

human

During Icapital.biz fund road show prior IPO, the audience and target investors type are retail.
COL or any institutional fund that could disrupt the fund operation should exit to return the fund shareholding to original form.
The fund is to serve retail investors. Those that attended the AGM can notice this is one of the listed companies with most vocal and active retail investors engagement.

2 months ago

For long term investor, just buy when someone is letting go at dirt cheap price.
How cheap should you consider buying? that depends on your appetite and level of greed.
Just dont get smoked until you trim your position.

2 months ago

Since 2010, Capital Dynamics and icapital biz Berhad have been spending a huge amount of money to organise the annual Investor Day for the benefit of the individual investors. The expenses typically add up to more than RM1 min, without being charged a single cent by Capital Dynamics for organising this huge and exhausting event. If a crowd of 2,000 people turn up, the cost per person will easily be RM500 and more.

To ensure that the people who register for the Investor Day actually turn up, a commitment fee of RM50 per person is imposed. To attend the Investor Day, the participant does not have to pay any other charges - only RM50. In short, if 2,000 attend the Investor Day, Capital Dynamics and icapital.biz Berhad have to bear the losses of at least RM450 per person or RM900,000 in total just for one year's event.

The contents in the Investor Day of icapital.biz Berhad are always top quality. Take the 7 corporate presentations in the 2023 Investor Day, held on Sunday, 5th Nov at the KLCC. Any investor who listened to the 7 corporate presentations and invested in the 7 stocks the day after the Investor Day would have all made good profit. Take a good look below.

[1] APM
The share price of APM on 6 Nov 2023 was RM2.09. After that, it jumped to a high of RM3.12. The vertical red line in the chart marks 2023 Investor Day.

[2] EUPE
The share price of EUPE on 6 Nov 2023 was RM0.88. After that, it jumped to a high of RM1.68

[3] HIBISCUS
The share price of Hibiscus on 6 Nov 2023 was RM2.68. After that, it reached a high of RM2.92. Among the 7 stocks, the price performance of Hibiscus has been affected by the flattish crude oil price.

[4] KELINGTON
The share price of Kelington on 6 Nov 2023 was RM1.52. After that, it more than doubled and reached a high of RM3.06

[5] MKH
The share price of MKH on 6 Nov 2023 was RM1.28. After that, it reached a high of RM1.43 and shareholders of MKH receive 1 share of MKH Oil Palm for free for every 7 MKH shares held. The share price of MKH Oil Palm reached RM0.65 upon its listing.

[6] OCK
The share price of OCK on 6 Nov 2023 was RM0.40. After that, it reached a high of RM0.65

[7] UNISEM
The share price of Unisem on 6 Nov 2023 was RM3.14. After that, it reached a high of RM4.18.

[8] ICAPITAL.BIZ BERHAD
The share price of icapital.biz Bhd on 6 Nov 2023 was RM2.78. After that, it reached a high of RM3.47.

An investor who attended the 2023 Investor Day and invested in all the 8 stocks after that would have achieved a 100% success. The share prices of the 8 stocks all rose after the 2023 Investor Day of icapital.biz Berhad. For this, the investor has to pay only a RM50 commitment fee.

In addtion to the 8 profitable stocks, the investor also gets to hear the accurate and bullish presentation of Tan Teng Boo, the managing director of Capital Dynamics. The KLCI closed at 1,464 on 6 Nov 2023 and it is now trading above 1,620.

It is now only May. However, it is never too early to mark it down in your diary for the 2024 Investor Day, Make plans NOW to attend Asia's most innovative investment event. Tell your family, your colleagues and friends early.

Is the Investor Day too good to be true ? The simple answer is, yes it is. It is too good to be true but it will be too foolish to miss attending the Investor Day.

Organising the annual Investor Day is part of Tan Teng Boo's heartfelt efforts to help the indvidual Malaysians invest soundly and have a better life. The Investor Day is not a profit making event. Make sure you are not scammed by the many scammers out there, just waiting to prey on you.

The 2024 Investor Day of icapital.biz Bhd will be held at the KLCC again on Sunday, 27th Oct 2024. There will certainly be a commitment fee to pay.

i Capital Newsletter Volume 35 Issue 36

1 month ago

EngineeringProfit

I invest in other counters for now. Return later

1 month ago

Thirai Thiraviam

TheContrarian:
> Eh, @Thirai , you didn't know that John is TTB?

No, I didn't. Whoever he might be, I'd appreciate it if he backed up his claims with sound arguments and supporting evidence. Unfortunately, given his lack of response to the question posed, it seems we cannot expect such things from him.

1 month ago

John is posting extraction from ICAP newsletter, it's not evidence John is TTB.
Even John is TTB, he is not obligated to answer queries from non shareholders, but you can purchase some ICAP shares to post question to him :p

1 month ago

icapital.biz Berhad is a Malaysia-focused fund, with an objective of long-term capital appreciation based on the Bamboo value investing philosophy of Capital Dynamics. It is not allowed to sell short, invest in derivatives or undertake any borrowings.

When Charlie Munger came to Berkshire Hathaway in the late Sixties, Warren Buffett was still investing the way his mentor, Benjamin Graham, had taught him - to invest in cheap, cigar butt type of companies.

When Munger arrived at Berkshire, he swayed Buffett away from Graham’s philosophy towards investing in quality companies at reasonable prices. Buffett did this with great success.

“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stu pid, instead of trying to be very intelligent,” said Charlie Munger.

i Capital.biz Berhad 4Q2019 Report

1 month ago

On 3rd Nov 2023, the KLCI closed at 1,449. On 5th Nov 2023, Tan Teng Boo gave his rare bullish outlook for the KLCI, where he predicted that the KLCI would hit 2,500 to 3,000 points in the next 3 to 5 years.

Since his presentation at the 2023 Investor Day, the KLCI has rallied around 170 points. If Tan Teng Boo's prediction is correct, the KLCI still has a long way to go.

This provides an excellent reason why he keeps recommending investors to buy icapital.biz Berhad, the perfect stock to hold for a prolonged bull market.

Nevertheless, no rally goes up in a straight line. The predicted 3 to 5-year bull market for the KLCI will be interrupted with small and big corrections. In fact, it is undergoing a small one at the moment.

Tan Teng Boo advises that the best stock to invest in such a confusing environment is icapital.biz Berhad especially when its share price is correcting now.

Besides, icapital.biz Berhad with the most innovative dividend policy in the world, still has over RM80 mln cash.

i Capital Newsletter Volume 35 Issue 38

1 month ago

The share price of icapital.biz Bhd (ICA) has surged 58.45% in the 12-month ending 12 Jun 2024. This has greatly outpaced the MSCI Malaysia Index which has gained only 14.18% over the same period. It has also exceeded the 34.02% jump in the NAV of ICAP during the same 12 months. After this nice rise, what should investors or shareowners do next ? Sell, hold on or should investors actually buy more ICAP shares ?

As at Jun 2024, Tan Teng Boo has not changed his bullish views of the KLSE and of ICAP. So, despite the nice increase in ICAP's share price and NAV, there is a lot of upside potential for both these variables. An excellent time to buy is now or when City of London (COL) and its gang of bullies are hastily selling.

In the 2nd half of May 2024, COL and its gang of bullies sold hundreds of thousands of ICAP shares. As a result, the share price of ICAP was pushed down from RM3.44 on 14 May 2024 to RM3.16 as at 31 May 2024, breaking its rising trend. In less than 2 weeks, ICAP's share price fell 8.13%.

The NAV of ICAP on 14 May was RM4.17. By 31 May 2024, it went up to RM4.35. As a result of COL and its gang of bullies hastily selling (intentionally?), the NAV discount of ICAP widened from 17.51% to 27.36% in about two weeks.

There are a few lessons to take away from this episode.

First and foremost, it is so easy for a single large investor to manipulate the share price of a listed collective investment scheme like ICAP and hence its NAV-share price differential. The share price plunged 8.13% while ICAP'S NAV jumped from RM4.17 to RM4.35. The Malaysian regulators need to urgently revise and tighten the rules and regulations surrounding such investment products.

Secondly, the financial year of ICAP ends on 31 May each year. The hasty selling started shortly before 31 May and ends on 31 May. To manipulate the NAV-share price differential and hence to widen the discount ? To push down the share price performance of ICAP for its 2024 financial year, which ends on 31 May 2024?

Lastly and most importantly, when COL and its gang are selling, it is an excellent time for investors to buy ICAP shares. It is likely that they will be selling more ICAP shares in the future, whether properly or improperly. Grab them as the day will come when their selling dries up. When this happens, do not be surprised when ICAP trades at a premium to its NAV again. This has happened before - from Oct 2005 to 2008 when ICAP was unanimously owned by individuals.

i Capital Newsletter Volume 35 Issue 38

1 month ago

bad feng shui on iCap

https://www.thestar.com.my/business/business-news/2024/05/31/klci-slips-below-1600-mark-857-stocks-in-red

Why it FY closing ended on the day with 857 stocks in red?

After Pop lost the case -- what do you expect? If foreigners can't buy more surely sell la!

When you see COL sell, the rest cannot sell ah????

COL still got at least 30 million++ shares to sell.....this will be the share price overhang even NAV shoot up to $5

It's a value trap....got shares sell now, no shares buy other counters.....you can even copy TTB portfolio without paying him any management fees. :)

Looking at the daily volume, no interests from retail investors to buy ady.

1 month ago

speakup

COL response: 🖕
Icap response: 🖕
I3 response: 😂

1 month ago

If I'm TTB, declares dividend

1 month ago

Or do share buy back

1 month ago

Don't use same old long winded tactics

1 month ago

An old dog may have some cognitive capacity to learn new tricks.. 😂😂

1 month ago

Wat! SBB? Dividend? Why benefit COL? Why bail them out at such a good price? You see the problem here?? TTB said COL sold hastily....you mean they should sell only 5,000 days/day to maintain price? Then you are asking COL to use 600 trading days to exit? 😂😂 COL not so bodoh la....why crash iCAP price while they managed to disposed a small little brother middle finger while the whole body is still trapped in iCAP

1 month ago

ICap's dividend policy will not only be subject to market and economic conditions, but also its value investing investment philosophy, it said. “It will be formulated as such – a base rate of 1% of the NAV per share, plus 8% of the difference between ICAP's share price and NAV.3 Oct 2023

Every shareholders of icapital must thank COL for NAV discount of ICAP widened from 17.51% to 27.36%.

So when will icapital declared the dividend of 1% of the NAV per share, plus 8% of the difference between ICAP's share price and NAV?

1 month ago

Dream ba.... Dividend... Rising NAV = more management fees😂😂

1 month ago

https://www.icapital.my/2023-10-02-icapital-biz-berhad-announces-innovative-dividend-policy-en-us/

1 month ago

1st year innovative dividend Cheng Beng anniversary will come soon. RiP

1 month ago

Are you saying the innovative dividend is a stillborn?

1 month ago

TheContrarian

Has an EGM been convened to approve the "innovative dividend" ?

1 month ago

All talk talk only....no action one on the innovative dividend....will be a miscarriage 🤣🤣

1 month ago

Thirai Thiraviam

@JohnD0ugh:
> In the 2nd half of May 2024, COL and its gang of bullies sold hundreds of thousands of ICAP shares. As a result, the share price of ICAP was pushed down from RM3.44 on 14 May 2024 to RM3.16 as at 31 May 2024, breaking its rising trend. In less than 2 weeks, ICAP's share price fell 8.13%.

I fear you are misrepresenting TTB's position. At every AGM, TTB has been lecturing us on how COL and Co. are keeping the ICAP price depressed by accumulating ICAP shares on the cheap. Didn't he even file a suit against COL to prevent them from buying more and thus keeping the prices low? Now that COL is finally selling, TTB, of all people, would be the one celebrating.

1 month ago

Thirai Thiraviam

@Sslee:
> https://www.icapital.my/2023-10-02-icapital-biz-berhad-announces-innovative-dividend-policy-en-us/

ICAP now sells at almost 27% discount. In this condition, should the dividend policy be implemented, the dividend would be about 14 cents per share.

1 month ago

My take TTB is using diversion tactics.. Hate DAP. Everything is DAP's problem. At this point TTB will be even more afraid to declare dividend. When it goes ex-dividend the share price has not mementum to go to before dividend... It's a psychological perception price got depresssed eve further.

1 month ago

What Teng Boo has observed over the decades is that when a financial or economic crisis hits, individual investors have to bear the brunt, although in aggregate, they as taxpayers would be the ones who would have to bail out the financial system and economy. These acute observations have made a huge impression on Teng Boo and have had a transformable impact on his life and career.

Viewing this asymmetric fact of life as unfair and an assault on natural justice, Teng Boo has, early on, resolved and made it the mission of Capital Dynamics to help society's underdog, the retail investor, in an area where his contributions can have the greatest positive impact on society - investing.

Throughout his decades-long investing and business career, Teng Boo has always believed in empowering and championing individual investors. As part of his life-long effort, he has, through numerous means, encouraged university students to acquire knowledge of value investing and its benefits.

Under his leadership, Capital Dynamics organises the Budding Value Investor Award (BVIA), a global investment research competition that requires student participants to submit and present investment research papers, related to value investing. The BVIA is open to university students from all disciplines and from any country in the world.

Sponsored by Capital Dynamics and icapital.biz Berhad, the 2024 BVIA is not just a competition; it is a testament of our commitment to nurturing young talents in investment. Value investing is not just a strategy; it is a philosophy, a mental framework, and a discipline embraced by investing titans like Charlie Munger, Philip Fisher, Warren Buffett, and Benjamin Graham - an approach that drives success in both bull and bear markets.

While students who major in Business Administration, Finance, Accounting, Economics, etc. will benefit significantly through the practical application of investment and financial principles learned in school, students from all majors and disciplines such as Engineering, Law, Mathematics, Computer Science, History and more are also invited to participate in this exciting investment research competition.

i Capital Newsletter Volume 35 Issue 40

4 weeks ago

Lead by example. If TTB intention is empowering and championing retail investors than he should attend companies AGM that icapital hold share and ask the hard questions and hold the BOD, external auditor accountable, responsible and answerable.

4 weeks ago

ocbc

Icap better buy Insas n attend their AGM

4 weeks ago

Dedicated to Papa TTB.....what is market manipulation.

SC sues Yu Kuan Chon over alleged market rigging, manipulation

https://theedgemalaysia.com/node/716904

3 weeks ago

3 weeks ago

icapital.biz Berhad is a Malaysia-focused fund, with an objective of long-term capital appreciation based on the eclectic value investing philosophy of Capital Dynamics. It is not allowed to sell short, invest in derivatives or undertake any borrowings.

Your worth transcends generations. We believe it is more than just a number on paper — it is a measurement of your uncompromising dedication to achieve success at every level throughout life. Your investment of that success with Capital Dynamics is something we take seriously.

We are rewarded by helping you secure and grow the worth of the generations before you and those that will come after. We believe this focus serves your best interests.

In fact, we founded Capital Dynamics on this very principle in 1989. We utilise 30 years of combined investment experience to secure your worth. It worked then. It works now. You invest. We return.

i Capital.biz Berhad 4Q2018 Report

2 weeks ago

TTB talk the talk and please walk the walk.
When will icapital announce the promised dividend?

ICap's dividend policy will not only be subject to market and economic conditions, but also its value investing investment philosophy, it said. “It will be formulated as such – a base rate of 1% of the NAV per share, plus 8% of the difference between ICAP's share price and NAV.3 Oct 2023

2 weeks ago

i3gambler

If I am not mistaken, the proposed dividend will come with DRIP.
Then it is kind like a combination of Dividend + mini Right Issue,
or put it simple, is just like a mini scale of Bonus Issue.
I don't like it.

2 weeks ago

The right issue is for investor who prefer to reinvest the money instead of cashing out via dividend.

1 week ago

In his annual shareholder letter, Warren Buffett gave some advice which is of great value to share owners of icapital.biz Berhad, whether large or small.

He said: "Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarity with Wall Street jargon such as alpha and beta."

My favourite part is this. He continued: "What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period — or even to look foolish — is also essential."

Holding cash is always linked to value investing and looking “unimaginative” or “foolish” will sometimes be the most sensible option. Remember icapital.biz Berhad has RM267 million worth of call option with no expiration date or strike price.

Finding attractive stocks to invest with sufficient margin of safety remains our focus.

i Capital.biz Berhad 3Q2018 Report

1 week ago

ocbc

TCB just want to show his fund NTA keep going up matching warren buffet performances

1 week ago

Another Buffet wannable?

Berkshire Hathaway's massive insurance operations require the company to have an ample cash reserve to fund potential insurance payouts.

1 week ago

We all knows that Call Option has natural leverage that will magnify the returns when you get it right. I was wondering if it has 2X, 3X even 4X return on his 267 million call option will deliver additional $4 -$8 NAV per share(adding additional gains 500-1 billion using 2018 as a baseline.

1 week ago

Gemini AI helps me a little on this Free Call option thinge
Quote
The claim of possessing a "free call option" is misleading and lacks financial rigor. There's no such thing as a truly free option; its acquisition invariably comes with a cost, often in the form of opportunity cost or other trade-offs.

It's more accurate to say that the individual is strategically holding a high cash position, anticipating potential market downturns to deploy capital for undervalued assets. While this approach might lead to short-term performance gains, attributing these gains to a "free call option" is an oversimplification and misrepresents the complexities of options trading.

Such a strategy is essentially a form of market timing, which is inherently risky and difficult to execute consistently. Any outperformance achieved through this method should be evaluated in the context of the overall market and investment universe, rather than being solely attributed to a mythical "free call option".
Unquote

1 week ago

A call option at current market price has no intrinsic value, therefore it is free. Just like giving out supermarket coupons with no discount! For suckers.

But the fund managers now going round saying he is super bullish and sold off all his "free call option"(cash) but willing to pay premium for his Call Options. 😝😝

1 week ago

The Trillion Dollar Equation.....if you are interested to find out go to this Youtube link to watch the video on Options

https://youtu.be/A5w-dEgIU1M?si=dA-P0vHccs11kQL-

6 days ago

In the 2023 Investor Day of icapital.biz Berhad, I made a rare long-term outlook presentation of the Malaysian stock market. On Sunday, 5th November 2023, I explained that after a relatively long time, Malaysia is now in a sweet spot of sorts.

As part of my 90-minute talk, I predicted that over the next 3 to 5 years, the KL Composite Index (KLCI) would rise to 2,500-3,000 points. On Friday, 3 November 2023, the KLCI closed at 1,449 points. Since then, events have more or less unfolded the way I predicted back in November 2023.

At the point of writing this commentary now, the KLCI has risen 11.7% or 170 points to close at 1,619 points. The mood on the stock exchange is more upbeat. The question now is whether the Malaysian bull market will continue as predicted.

At this point in time, I do not have any reasons to revise my views and I continue to maintain my bullish forecast.

What about the future performance of icapital.biz Berhad? Again, in such a bullish market, I still expect icapital.biz Berhad to perform strongly in terms of its NAV and share price. In such a bullish environment, it is reasonable to expect the NAV discount of icapital.biz Bhd to disappear.

Should the present large foreign investors allow the stock price of icapital.biz Bhd to trade without any interference, then, the discount of your Fund will disappear at a faster pace and its stock price will then be able to trade at a rational level earlier than otherwise.

i Capital.biz Berhad 4Q2024 Report

1 day ago