| |
ABC
Bhd |
XYZ
Bhd |
| Industrial
sector |
Telecommunications |
Infrastructure |
| Brief
summary |
Has
the biggest market share of the mobile phone. This company
seems to be poised to dominate this exciting field. |
This
company holds the concession that operates the bulk of
the major expressway in the country. Relatively low capital
expenditure is needed to keep going. |
| Reason
for IPO |
Raising
funds for further expansion. |
Requires
capital to pay its current debts. |
| Management |
Well
managed with proven track record and practices good corporate
governance. |
Well
managed. |
| Past
earnings |
Good
track record with proven revenues. |
Healthy
cash flow and steady revenue. |
| Prospects |
High
growth potential and market dominance in the short to
medium term subject to the risks in the industry. |
Stable
earnings potential with good cash flow, able to pay good
dividends but has steady, unexciting growth. |
| Risks
|
- Rapid
technological changes
-
Stiff competition
- Extensive
regulations
-
Reliance on hardware and extent of network.
|
- Expiry
or termination of concession would leave the company
with no assets.
-
Toll rates are outside the company's control.
|
| Dividend |
Depends
on how well the company is doing. |
Strong
dividend policy with the ability to give decent returns. |
| Offer
price |
RM3 |
RM1.50 |
