As at end of April 2019, 2 major shareholders of the ARBB-ICPS are
1) Datuk Liew Kok Leong
- ICPS - about 35.4% (as at end of March 2019)
2) Mr Au Yee Boon
- ICPS - about 28.2% (as at beginning of May 2019)
In total, both of them controlling 63.6% of the ICPS,
Due to the volume of the ICPS (1 billion share issued), and
The new ARB Shares to be allotted and issued pursuant to the conversion of the ICPS shall, upon allotment and issuance, rank pari passu in all respects with the then existing Shares
Effectively Datuk Liew and Mr Au are controlling the ARBB even without immediate conversion of the ICPS.
Also with reference to the RHB IB analysis for ARBB, the analysis mentioned the estimated YE19 EPS of 15s (provided no conversion of ICPS, and existing mother share of 119mio as at end of May 2019) and YE19 EPS of 4s provided 30% conversion of ICPS.
Between end of May 2019 till 11/6/2019, addition conversion of ICPS was only about 6mio, therefore increased the paid mother share to 126mio. With this rate of conversion (optimism scenario), share price of mother will not much affected by the ICPS conversion.
Since it is unlikely for Datuk Liew and Mr Au to convert the ICPS (as they are controling the ARBB even without the conversion, and conversion will dilute the EPS and affects the share price), the conversion of remaining 35% may be time consuming! and even if under worst case scenario of sudden conversion, ARBB still able to maintain a PE of 10.
Therefore, it is highly probably that PE for ARBB will not be dilute in near future.
Couple with higher chance of more projects to be announce and possible some other news coming in after Datuk Liew is being appointed as ED for PSIPTEK on 10/6/2019, it is POSSIBLE for ARBB share price to continue to rise for medium to long term.
Some other points
i) other than the C&M Energy, other recent projects by ARBB are related to property developments i.e. Perkasa Selalu, IJV and PSIPTEK
ii) 50% shareholder of the IJV is Mr Chin Kok Hoong, he also hold 50% of Blitz Tower Development S/B. Another shareholder of the property developer, Mr Chin Kok Foong, recently being appointed as ED of PSIPTEK
iii) Probable more property development projects to be injected into PSIPTEK by Mr Chin? Blitz group - property developer and construction! Probably all property development to be in the form of IOT smart home and the IOT portion to be award to ARBB?
iv) As PSIPTEK has another future project i.e. Lawas Sarawak / Sipitang Sabah RM2.1 billion project, possible corporate exercise involve PSIPTEK-ARBB?
https://klse.i3investor.com/servlets/stk/nb/7181.jsp
Labels: ARBB
https://klse.i3investor.com/blogs/ChrisKho/210376.jsp
