Mercury Securities Group Berhad is pleased to announce that the share application from the Malaysian public for its initial public offering (IPO) which was open for 5 market days and closed on 5 September 2023 has been oversubscribed by 45.45 times.
Mr. Chew Sing Guan, Managing Director of Mercury Securities
Mercury Securities is an investment holding company and through its wholly-owned subsidiary, Mercury Securities Sdn Bhd (a Participating Organisation of Bursa Malaysia Securities Berhad (“Bursa Securities”) and a Recognised Principal Adviser by the Securities Commission Malaysia) (collectively “Group”) is principally involved in the provision of stockbroking, corporate finance advisory services and other related businesses such as margin financing facilities services, underwriting and placement services, as well as provision of nominee and custodian services.
Mercury Securities’ IPO comprising the following:
(i) public issue of 157,095,700 new ordinary shares in Mercury Securities (“Share(s)”), at an issue price of RM0.25 per Share, representing 17.59% of the enlarged issued Shares of Mercury Securities; and
(ii) offer for sale of 71,512,300 existing Shares at an offer price of RM0.25 per Share, representing 8.01% of the enlarged issued Shares of Mercury Securities.
For the public portion, 7,957 applications for 1,508,338,900 Issue Shares were received, which represents an oversubscription rate of 66.56 times.
For the Bumiputera public portion, 4,969 applications for 565,774,500 Issue Shares were received, representing an oversubscription rate of 24.34 times.
In total, 12,926 applications for 2,074,113,400 Issue Shares with a value of RM518,528,350.00 were received from the Malaysian public representing an overall oversubscription rate of 45.45 times.
Meanwhile, the total of 22,325,000 Issue Shares available for application by the Eligible Persons were fully subscribed.
Further, the Placement Agent has confirmed that 45,470,700 new Shares made available for application by way of private placement to selected investors as well as 44,650,000 new Shares made available for application by way of private placement to Bumiputera investors approved by the MITI have been fully placed out.
The notices of allotment will be posted to all successful applicants on or before 15 September 2023.
Managing Director of Mercury Securities, Mr. Chew Sing Guan said, “We are deeply grateful for the enthusiastic response we’ve received from investors for our IPO. This reinforces the fact that our Company’s fundamentals and prospects have been positively acknowledged. We shall continue to upscale our growth and create value for our stakeholders going forward.”
Public Investment Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent in conjunction with the IPO.
The Group is expected to list on the ACE Market of Bursa Securities on 19 September 2023.
Mercury Securities Group Berhad: https://www.mercurysecurities.com.my/
Recently, Huatai Securities issued a research report pointed out that the recovery of offshore demand and the shortage in the supply side come at the same time. In light of this, offshore drilling platforms have become scarce in the industry chain. CIMC Group, having strategically laid out its offshore equipment business fifteen years ago, has emerged as the major player in deepwater platform design and construction in China. Its offshore oil drilling platforms have been successfully deployed worldwide in major offshore oil and gas production areas, showcasing an extensive product range.
Huatai Securities has initiated coverage of CIMC Group for the first time and accorded it a “Overweight” rating. Huatai’s expectations for CIMC Group’s 2023-2026 PE ratio lie in the range of 23-26 times, corresponding to a target price of RMB 7.6. Taking into account the average H and A-share PE ratios from 2023 to the present at 67%, along with a Hong Kong dollar exchange rate of 0.91, the corresponding H-share 2023 PE ratio is projected at 17.7x, resulting in a corresponding H-share target price of HKD 5.63.
The report also highlights that many new container ships are expected to be delivered in 2023-2024, along with a high volume of old containers reaching the replacement stage. As a leading container producer, CIMC Group’s renewal demand will provide sustained support to the industry. Concurrently, the global offshore market is gradually entering an upswing in the business cycle, leading to a significant increase in the Group’s new order intake. As of March 2023, CIMC Group’s new effective offshore orders have surged by 77% YoY, amounting to USD 2.56 billion, while the value of its accumulated orders in hand has grown by 122% YoY, reaching USD 3.9 billion.
Meanwhile, the Ministry of Industry and Information Technology recently issued the Fifth Batch of specialized, refinement, differential and innovation (“SRDI”) “Little Giants” Enterprises. Four subsidiaries under CIMC Group (000039.SZ/02039.HK) have been selected as national-level SRDI “little giants” enterprises, recognizing their leading key technologies and outstanding product innovation capabilities. With this recent recognition, CIMC Group now boasts a total of 13 subsidiaries awarded with this honor. As a global leader in logistics and energy industry manufacturing, CIMC Group maintains a wide business layout and sustains diversified development.
About China International Marine Containers (Group) Co., Ltd. The CIMC Group is a world leading equipment and solution provider in logistics and energy industries, and its industry cluster mainly covers logistics and energy fields, strengthening its position as a global market leader. In the logistics field, the Group still adheres to taking container manufacturing business as its core business, based on which to develop road transportation vehicles business, airport facilities and logistics equipment/fire safety and rescue equipment business and to a lesser extent, logistics services business and recycled load business providing products and services in professional field of logistics; in the energy field, the Group is principally engaged in energy/chemical/liquid food equipment business and offshore engineering business; meanwhile, the Group also continuously develops emerging industries and has finance and asset management business that serves the Group itself. As a diversified multinational industrial group that shoulders the mission of global serving, CIMC has 3 listed companies and over 300 member enterprises in Asia, North America, Europe, Australia and others, and extensive customers and sales networks covering more than 100 countries and regions. During the year, the Group recorded a revenue of RMB141.54 billion, with gross profit margin remained at 15.28% and net profit attributable to shareholders of the Company after deducting non-recurring profit or loss of RMB4.28 billion. The Group was recognized by Fortune as one of the “China’s Most Admired Companies 2022”, and was ranked 84th in the Fortune 500 China 2022, an increase of 35 places over the previous year. For more information, please visit http://www.cimc.com.
Mercury Securities Group Berhad has entered into an underwriting agreement with Public Investment Bank Berhad (PIVB) today for the Group’s upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad. Mercury Securities is an investment holding company and through its wholly-owned subsidiary, Mercury Securities Sdn Bhd (a Participating Organisation of Bursa Malaysia Securities Berhad and a Recognised Principal Adviser by the Securities Commission Malaysia) (collectively “Group”) is principally involved in the provision of stockbroking, corporate finance advisory services and other related businesses such as margin financing facilities services, underwriting and placement services, as well as provision of nominee and custodian services.
The IPO involves the public issue of 157.10 million new ordinary shares (“Issue Shares”) and an offer for sale of 71.51 million existing ordinary shares (“Offer Shares”) representing 17.59% and 8.01% respectively of Mercury Securities’ enlarged issued shares of 893,000,000 ordinary shares upon its listing.
The Issue Shares and Offer Shares will be allocated in the following manner:
A. PUBLIC ISSUE
Malaysian Public – 44.65 million Issue Shares representing 5.00% of the enlarged issued share capital for application by Malaysian public, of which 50.00% is to be set aside for Bumiputera investors.
Eligible Persons – 22.33 million Issue Shares representing 2.50% of the enlarged issued share capital for application by eligible directors, employees and persons who have contributed to the Group’s success.
Selected Investors – 45.47 million Issue Shares representing 5.09% of the enlarged issued share capital made available by way of private placement to selected investors.
Bumiputera Investors approved by Ministry of Investment, Trade and Industry (“MITI”) – 44.65 million Shares representing 5.00% of the enlarged issued share capital made available by way of private placement to Bumiputera investors approved by MITI.
B. OFFER FOR SALE
Selected Investors – 4.53 million Offer Shares representing 0.51% of the enlarged issued share capital made available by way of private placement to selected investors.
Bumiputera Investors approved by MITI – 66.98 million Offer Shares representing 7.50% of the enlarged issued share capital made available by way of private placement to Bumiputera investors approved by MITI.
PIVB will underwrite 66.98 million Issue Shares made available for application by the Malaysian Public and Eligible Persons.
Managing Director of Mercury Securities, Mr. Chew Sing Guan stated, “Our listing will enhance our visibility and reputation in the marketplace, and enable our directors, employees, business partners and public investors to participate in the growth and continued expansion of our business whilst increasing shareholders’ value.”
“This corporate milestone will help scale our Group to new heights by tapping on new opportunities, and to respond to the evolving needs of our customers and trends in the marketplace. Our Group will remain focused and committed to continually provide innovative products and solutions that create value for our customers and strive to exceed their expectations. To this purpose, we are committed to developing our digitalisation programme in order to innovate our products and services offerings for our customers, while we continue to automate and streamline our operations for all-round efficiency.”
Chief Executive Officer, Mr. Lee Yo-Hunn of PIVB said, “We are proud to be the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent of Mercury Securities and to play a part in Mercury Securities’ new corporate journey as a listed company on the ACE Market of Bursa Malaysia Securities Berhad. The listing will certainly augur well for Mercury Securities to tap on the capital market for its growth and expansion plans.”
Mercury Securities Group Berhad: https://www.mercurysecurities.com.my/
Recently, “HKUST-Sino One Million Dollar Entrepreneurship Competition 2023” (referred to as the “Entrepreneurship Competition” or “Competition”) sponsored by GF Securities Co., Ltd. (“GF Securities”, stock code: 1776.HK; 000776.SZ) for the 7th consecutive year, has come to a successful end at the Hong Kong University of Science and Technology on June 7. This year’s competition attracted 234 participating teams, hitting a record high. After fierce competition, Allegrow, aiming to bring cell therapeutics to all with its self-developed platform, AimGel, and enabling faster and cheaper cell therapeutics production through its proprietary hydrogel microbead technology, stood out from many participating projects and won the Champion of the competition and the “GF Innovation Award” sponsored by GF Securities. Ms. Xiaoying MAI, Executive Director of GF Investments (Hong Kong) Co., Ltd., was invited to attend as the award presenter and judge for two consecutive years, providing professional advice and guidance to the participating teams. Mr. Xiaodong LIN, CEO of GF Holdings (Hong Kong) Corporation Limited, also paid close attention on the entrepreneurship competition and encouraged the participating teams. He believes that “Entrepreneurs are people who dare to take risks, envision new possibilities, and fearlessly pursue their dreams. With their innovative ideas and unwavering dedication, entrepreneurs have the potential to make a long-lasting impact on the world. The entrepreneurship competition cultivates a sense of community among young entrepreneurs, enabling them to learn from each other and join hands to work on new ideas. GF Holdings (Hong Kong) is dedicated to entrepreneurial spirit through this kind of competition to invest in the future.”
Established in 2011, HKUST-Sino One Million Dollar Entrepreneurship Competition has been held for 13 sessions. As the platinum sponsor of the competition for 7 consecutive years, GF Securities has been fully supporting innovation and entrepreneurship of youths. The Company also sponsored the “GF Innovation Award” for 5 consecutive years to specially recognize the entrepreneurial teams with innovative breakthrough. At present, the competition has expanded from Hong Kong to other regions in China, including Beijing, Guangzhou, Macau, Shenzhen, and Foshan, becoming a well-known youth entrepreneurship competition in Greater China. So far, more than 700 teams from all over the world with different scientific research backgrounds such as artificial intelligence and medical etc. participated in the competition, of which many widely recognized start-ups and projects have been cultivated. Moreover, the top 3 teams from the Hong Kong region will be eligible to participate in the national final held later this year, together with the winning teams from the other five regions, to jointly compete for the national championship.
With the theme of “Empower your Future”, this year’s competition attracted 234 participating teams, which was a record-high number. This year’s competition had three rounds of evaluation, and the participating projects were mainly focusing on hot topics such as healthcare, artificial intelligence, and sustainable development. ESG, as a hot issue, also earned widespread attention from entrepreneurs and 80% of the projects this year have involved ESG-related element. As the long-term sponsor of the competition, GF Securities proactively participated in the competition progress. Ms. Xiaoying MAI, Executive Director of GF Investments (Hong Kong) Co., Ltd., was invited to attend as the award presenter and judge for two consecutive years, providing professional advice and guidance to the participating teams.
Ms. MAI said, “It is a great honor to represent GF Securities in the entrepreneurship competition again this year and act as the award presenter and judge. This year’s competition brought many excellent entrepreneurial teams together, and we fully recognized their outstanding innovative spirit and market insights in their presentations. As the offshore investment arm of GF Securities, GF Investments (Hong Kong) has always paid close attention to outstanding start-ups in various fields. In the future, GF Securities and its subsidiaries will continue to fully support great entrepreneurs and the growth of start-ups, to enable more aspiring youth to realize their entrepreneurial dreams, and support more outstanding university research results to be commercialized. “
As one of the most influential securities companies in China’s capital market, GF Securities has devoted to substantial charity work. Domestically, GF Securities has been focusing on technological innovation through projects such as “Micro Enterprising Initiatives for University Students” to support young students in their innovative and entrepreneurial practices. GF Securities has successfully held micro-entrepreneurship activities for eight consecutive years, with a cumulative investment of more than 10 million dollars to help college students improve their innovation and entrepreneurship capabilities. So far, it has attracted 8,830 micro-entrepreneurship projects from college students, of which 400 projects have received reward and support, earning high brand awareness and influence among over 1,000 domestic colleges and universities. In the future, GF Securities will continue to adhere to its core value of “Gathering Love From the Bottom of the Heart”, actively fulfil its social responsibilities, and strive to enhance the vigorous development of youth entrepreneurship both domestically and abroad.
About GF Securities Co., Ltd. Established in 1991, GF Securities Co., Ltd. is one of the first full-service securities firms in China. The Company was successfully listed on the main boards of the Shenzhen Stock Exchange (Stock code: 000776.SZ), and the Hong Kong Stock Exchange (Stock code: 1776.HK), in 2010 and 2015 respectively. Due to its excellent business performance, its continued refinement in risk management and its quality services, the Company has achieved sustained and steady development, and remains one of the most influential securities companies in China. As of December 31, 2022, the Company had 338 subsidiaries and branches across 31 provinces, cities, and autonomous regions throughout China. The Company’s market-leading capital strength and profitability has allowed it to rank top among domestic listed securities companies in terms of aggregate market value. Relying on the ” GF Securities Social Charity Foundation “, the Company actively fulfils its social responsibilities, focusing on the two major areas of poverty alleviation and aiding education, proactively practising social responsibilities, and the Company’s reputation and brand influence improve continually.
Daiwa Securities, in its recently published research report, has upgraded the rating for the parent company of Precision Tsugami (China) Corporation Limited (“Precision Tsugami” or the “Company”, stock code: 1651), which is the largest foreign-owned CNC high-precision machine tool manufacturer in the PRC . The “Outperform” rating was given to the firm as Daiwa Securities was particularly optimistic about Precision Tsugami’s strong business foundation in the PRC, and the higher-than-expected number of orders received in July.
In the report, Daiwa Securities noted that Precision Tsugami brought a new plant on stream in Anhui Province, the PRC, in March 2021, thus increasing total production capacity by just above 15%. The ability to supply the needed volume of products by the deadlines demanded by customers is particularly important in the PRC. The Group commands a lofty share of the local market for small- and mid-size sliding headstock automatic lathes (60-70% by its estimate). Leveraging its strong profile, the Company has established close relations with a number of local area suppliers and appears to be well positioned when it comes to securing the parts, materials and workforce needed for business activities. At this juncture, the procurement difficulties have not had a major impact on the Company’s production. In view of the higher-than-expected number of orders in July, Daiwa Securities raised its revenue forecast for the parent company of Precision Tsugami. The forecasted revenue and operating profit for FY21 are 100.5 billion yen (HK$7.084 billion) and 20.5 billion yen (HK$1.445 billion), respectively, and 107 billion yen (HK$7.542 billion) and 21.8 billion yen (HK$1.537 billion) in FY22, respectively. Daiwa Securities believes that orders will remain at a high level. In the first quarter of FY22, Precision Tsugami accounted for 70% of the parent company’s revenue.
Since its establishment, Precision Tsugami has been committed to developing, manufacturing and selling modern CNC machine tools. Currently, it manufactures various high-end precision CNC machine tools such as automatic lathes, turret machines, machining centres and grinding machines that are used in diverse industries, spanning automotive parts, smart phones and 5G communications to automation, medical equipment and construction machinery. The Company is the largest overseas production base of Tsugami Japan. In addition to selling its products in the PRC, the Company also exports to Japan, South Korea, Taiwan, Europe, the United States and other markets.
About Precision Tsugami (China) Corporation Limited The Group is an established foreign-owned CNC high-precision machine tool manufacturer in the PRC which primarily engages in the manufacture and sales of a wide range of CNC high precision machine tools under the TSUGAMI brands. The Group has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 25 September 2017. The Group’s CNC high-precision machine tools can be broadly classified into four major product categories, namely, precision lathes, precision machining centres, precision grinding machines and precision thread and form rolling machines. The Group offers CNC high-precision machine tools that are of standardised design and specifications to its customers and is able to provide machine tool solutions to them and make various specifications and/or customisations to CNC high-precision machine tools. According to Frost & Sullivan, in terms of revenue in 2017, the Group ranked third in the CNC high-precision machine tool industry in the PRC and was the largest foreign-owned CNC high-precision machine tool manufacturer in the PRC. The Group also ranked first in the PRC precision automatic lathe market in terms of revenue in 2017, with a market share of approximately 49.8%.
