Sim Leisure Group
Penang theme park developer Sim Leisure Group is headed for a Catalist debut on March 1, it said in an offer document lodged yesterday.
It plans to offer 26.4 million shares to the public at 22 cents apiece, valuing the group at $29.5 million.
Gross proceeds of roughly $5.8 million will be used to fully redeem outstanding redeemable convertible preference shares held by Penang Development Corp.
Under an investment agreement inked in 2016 to finance one of the group's two parks, Penang Development Corp - a state government entity - holds two million such shares, with a maturity date in June 2021.
The investment agreement also gives Penang Development Corp the right to take over all of the group's principal subsidiary in the event of a payment default or certain other conditions.
The offer document noted that one risk to business is how Sim Leisure has previously relied on external financing, such as the Penang Development Corp share issuance, as well as shareholders' loans, to fund its capital expenditure.
Also, the initial public offering would put about one-fifth of the company in public hands, but Sim Leisure founder and chief executive Sim Choo Kheng and his spouse, Ms Silviya Georgieva Georgieva, will hold a combined 78.4 per cent stake.
Sim Leisure most recently earned a net profit of RM2 million (S$680,000) in the first half of last year on revenue of RM8.45 million, according to unaudited results.
United Industrial Corp
Property group United Industrial Corp's (UIC) full-year profit for the year ended Dec 31 rose 5 per cent year on year to $313 million, while revenue slumped 49 per cent to $657 million on the back of lower sales recognised from property trading.
Earnings per share (including fair value gains or losses on investment properties) for FY2018 worked out to 21.9 cents per share, up from 20.8 cents per share a year ago. It boosted its final dividend to 3.5 cents from three cents previously.
During the financial year, the group recorded fair value gains on investment properties to the tune of $48 million, versus losses of $30 million a year ago.
UIC said office rentals are expected to continue to be well supported amid strong demand and limited supply completion in the Central Business District.