Friday, May 27, 2011

#Update* UOA Devt final retail price fixed at RM2.52

KUALA LUMPUR: UOA Development Bhd's institutional price has been fixed at RM2.60 and the final retail price at RM2.52.

At RM2.52, this was below the indicative retail price of RM2.90.

CIMB Investment Bank Bhd said on Friday the price was fixed following the completion of the book-building under the institutional offering on Thursday, May 26.

The retail offering closed at 5pm on Wednesday, May 25.

It said as the final retail price of RM2.52 per offer share was lower than the retail price, a refund of the difference of 38 sen per offer share would be made to the successful applicants within 10 market days.

The listing exercise of UOA Development included an offer for sale of up to 407 million existing shares of 5.0 sen each.

Of the 407 million shares there would be an offer for sale of 120 million ' of which 50 million shares would be offered to local and foreign institutions to be determined via a book building exercise and 70 million shares to the public at an indicative retail price of RM2.90 per share.

There was also a public issue of 287 million new shares to the Malaysia and foreign institutional and selected investors approved by the Ministry of International Trade and Industry.

RHB Research Institute had valued UOA Development at RM3.45, at its RNAV per share and in line with its valuations on IJM Land Bhd.

'The implied price-to-earnings and price-to-book based on our RM3.45 indicative fair value are 18 times and 2.9 times for FY11, which are reasonable based on the sector's overall valuations," the research house said.

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