IPO

Home furniture manufacturer Mobilia Holdings Bhd, has registered overwhelming interest in its initial public offering, registering an oversubscription by a whopping 92.17 times for its public issue of new shares.

Mobilia’s listing is scheduled on February 23, ACE MARKET. Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

The ACE Market which stands for ‘Access, Certainty, Efficiency’ is actually the new name for the formerly known MESDAQ (Malaysian Exchange of Securities Dealing and Automated Quotation) market.

Malacca Securities: At an IPO offer price of RM0.23, Mobilia’s forward PE valuation in FY21f stands at 8.6x, based on our estimated FY21 EPS of 2.7 sen. We arrived our fair value of RM0.27 (17.4% upside from its IPO price) by assigning a target PE of 10.0x to its FY21f EPS. The assigned target PE is discount of approximately 15.0% to the furniture manufacturers peers average listed on Bursa Malaysia at 11.8x due to the smaller market capitalisation of Mobilia.

I’m not an expert I’m just sharing what I know. Trade at your own risk.

Wish you a nice weekend! Bursa trading will resume operations on Monday Feb 15.

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