Westports offering 813.19mil shares under IPO

PETALING JAYA (July 8, 2013): Westports Malaysia Sdn Bhd, the operator of the country's busiest port, will offer up to 813.19 million shares under its initial public offer (IPO) slated later this year.

According to its draft prospectus posted on the Securities Commission website on Friday, the operator will offer 710.89 million shares, representing up to 20.8% of the its issued and paid up capital, to institutional investors.

The remaining 102.3 million shares, or 3% of its issued and paid up capital, would be offered to its eligible employees, directors and the public.

Wesports said it would not be issuing new shares under the IPO and it would not receive any proceeds from the IPO as it does not require additional equity funding for its business.

"We intend to fund Westports expansion though cash generated from operations and proceeds from the issuance of sukuk," it said.

As at December 31, 2012, Westports Holdings Bhd, the name which it will be known after listing, had cash and cash equivalents of RM304.9 million.

Westports anticipates its capital expenditure in 2013 and 2014 to be about RM658 million and RM397.9 million, respectively, which mainly would be for construction of container terminal seven (CT7), the purchase of quay cranes and other operating equipment, land reclamation and maintenance works.

Under its pre-listing exercise, West Ports will undertake a bonus issue of 183 million shares of approximately 1.56 bonus shares for every one RM1.00 share held.

This will be done by capitalising RM183 million from its retained earnings of RM149 million and from its share premium of RM34 million.

"Following that, the issued and paid-up share capital of Westports Holdings will increase from 117 million pre-subdivided shares to 300 million pre-subdivided West Ports shares," it said.

It is also proposing a special cash dividend payment of RM738 million which would be funded by its dividend income receivable from its subsidiary.

For the years ended December 31 2010, 2011 and 2012, it generated total operational value (excluding construction revenue) of RM975 million, RM1.1 billion and RM1.22 billion.

Its total profit after tax for the same periods were was RM284.9 million, RM316.5 million and RM361 million, respectively.