Background

BWYS Group Bhd (BWYS) is mainly engaged in the manufacturing and supply of sheet metal products, scaffoldings and other steel related products.

IPO Statistic

The IPO entails a public issue of 356.3mn new ordinary shares and an offer for sale at an IPO price of RM0.22/share, which accounts for 34.8% of the group’s enlarged issued share capital.

Public Issue:

• 51.3mn new shares for application by the Malaysian public,

• 61.5mn new shares for application by eligible parties,

• 128.2mn new shares for MITI,

• 15.4mn new shares for private placement to selected investors, and

• 100.0mn offer for sale of existing shares.

Main Competitive Advantages

1. Well-established track record with strong business footprint across Malaysia,

2. Robust client base with diversified product offerings; and

3. Resilient brand equity.

Valuation

At an IPO price of RM0.22/share, BWYS is priced at a trailing PER of 19.2x FY23 core EPS. We value the company at 11x CY25 EPS, arriving at a fair value of RM0.27/share. Not Rated.

Source: TA Research - 4 Jul 2024