UOA DEVELOPMENT BERHAD
KLSE (MYR): UOADEV (5200)
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Last Price
1.78
Today's Change
+0.02 (1.14%)
Day's Change
1.75 - 1.79
Trading Volume
1,024,800
IPO Info
Offer Period
Opening
2011-05-18
Closing
2011-05-25
Time Table
Allotment Date
2011-06-06
Listing Date
2011-06-08
Price
Issue Price
2.90
Units
1,195,860,000
Share Capital
0.000
No of Shares
Public Issue
-
Offer for Sale
-
Private Placement
- -
Issuing House
MIH 515
ISIN Code
MYL5200OO000
Prospectus:
THE INITIAL PUBLIC OFFERING (“IPO” OR “OFFERING”) OF UP TO 407.00 MILLION ORDINARY SHARES OF RM 0.05 EACH IN UOA DEVELOPMENT BHD (“UOA DEVELOPMENT”) (“SHARES”), IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR 1,195.86 MILLION SHARES ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD, COMPRISING:
(I) OFFER FOR SALE OF UP TO 120.00 MILLION EXISTING SHARES (“OFFER SHARES”) COMPRISING:
• INSTITUTIONAL OFFERING OF UP TO 50.00 MILLION OFFER SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING (“INSTITUTIONAL PRICE”) PAYABLE IN FULL UPON ALLOCATION; AND
• RETAIL OFFERING OF 70.00 MILLION OFFER SHARES TO THE MALAYSIAN PUBLIC, ELIGIBLE DIRECTORS OF UOA DEVELOPMENT, ELIGIBLE EMPLOYEES OF UOA DEVELOPMENT AND ITS SUBSIDIARIES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF UOA DEVELOPMENT AND ITS SUBSIDIARIES AT THE RETAIL PRICE OF RM2.90 PER SHARE (“RETAIL PRICE”), PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE, IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE; AND
(II) PUBLIC ISSUE OF 287.00 MILLION NEW SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS INCLUDING BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE PAYABLE IN FULL UPON ALLOCATION,
SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND OVER-ALLOTMENT OPTION (AS DEFINED HEREIN). THE FINAL RETAIL PRICE WILL BE EQUAL TO THE LOWER OF (I) THE RETAIL PRICE; AND (II) 97.00% OF THE INSTITUTIONAL PRICE, SUBJECT TO ROUNDING TO THE NEAREST SEN.
UOA-NoticeOfProspectus (71KB).pdf
UOA-Cover to Page 140 (2.9MB).pdf
Discussions
17 people like this. Showing 50 of 1,447 comments
Most impatient investors don't like stocks that pays once a year dividend, but I love it when I own 40+ diversified stocks! Now, looks like it's wanting to change to 2x per year dividend payments, which is also okay with me. Nice!!
2023-07-20 20:35
With hindsight, this is a stock one should have loaded up during uncertain times. This company has almost no debt and is in very nice Net Cash position. When revenue declined, because its Finance costs is negligible, it continues to be able to keep its PAT a very nice positive. It has a war chest that it is now utilizing to reward shareholders to make itself leaner and more agile. This is the right way.
Many people don't realize and think all property developers are identical. They are not. Those that has the highest gearing also has the highest risk. This company is very well managed financially and deserves the spike in price. The brand name is well recognized, when foreigners come back, they will gravitate towards recognized names like UOADEV and UOAREIT.
2023-07-20 21:13
When it was trading at RM1.6 just a few days ago, people don't realize that the Net Cash position is at least 91.5 sen (= 2.204B - 0.245M borrowings = 2.204B Net Cash / 2.409B ~ 91.5 sen)!!
Which means net of cash, the entire business was on sale for only 1.6-0.915 = 68.5 sen!
This is a company with NAV of RM2.4! Less cash = 1.485!.
In other words, excluding cash, the company was available for sale at 0.685 / 1.485 = 46 sen for every RM1 of Net Asset Value!
The margin of safety was super incredible!!!!
2023-07-20 21:25
For the past 8 years, the company has been paying dividends equal to 15 / 15 / 15 / 14 / 14 / 15 and past 2 years cut that down to 10 / 10 sen. Anyone who looked at UOADEV dividend history for past 8 years will never predict that this year, it decides to pay 20 sen as First Interim Dividend! Not only is this higher than the past 8 year dividend payments, it suggests that if the Final Year Dividend is going to be another 10 sen, then, total dividend could look like 30 sen, which is super incredible when a few days ago it was RM1.60 and those who elected to have recent dividends as shares was able to own it at RM1.49 i.e. the dividend yield is easy 20%!!!
Very nice!
2023-07-20 21:30
yo dividendguy67, i give u something even better! Insas Net Cash is about RM1.10 but the share price only 85sen!
Which means net of cash, the entire Insas business is ZERO value! ZERO!
2023-07-20 21:31
Satu satu property counter gives surprise from eco, UEM to oua like bank MBSB and RCE giving special dividend pushing up the share price for entire banking sector
2023-07-22 02:12
speakup, my handle is DividendGuy, not NetCashGuy. To me, there is massive difference between having NetCash vs Paying dividends. Insas has extremely poor history of paying dividends, hence, not meet my criteria. Sure, on paper, there's value there, but 2 concerns: 1. When will Insas ever share that wealth with shareholders? Clearly not over the past 10 years. Next 10 years??? 2. I couldn't quite follow easily the 11 July announcement about providing financial assistance to its money lending subsidiary - if something is too difficult, then, I pass.
2023-07-22 11:25
While the company's willing to be generous with dividends is good, could such generosity be interpreted as Management seeing limited growth opportunities, hence choosing to reward shareholders such?
2023-07-22 16:41
Doesn’t matter really, Money given out is real money. Can save it, reinvest it or spend it in whatever way u like.
To give out more money signals company is confident of paying and they have the cash to pay.
2023-07-22 23:19
Another way to look at this from shareholder perspective is that I am happy they choose to pay additional 20 sen in dividend, after 8 years of prudent dividend paying.
2023-07-24 23:29
For me I have always chosen scrip all this while. This saves lots of brokerage fees and I am able to get more shares at lower prices. Fortune created automatically
2023-07-25 10:38
UOADEV is still cheap at 1.87. Historically, it pays dividends around 14-15 sen. Only over past 2 years, during Covid pandemic, that the dividend was cut prudently to 10 sen. Now it starts to pay 20 sen interim dividend, which looks like a one-time thing. But going forward, if it goes back to 14 sen annual dividend (very achievable, since large net cash), that's 14 / 1.87 = 7.5% dividend yield, which is very, very nice. Sure beats EPF. Hence, despite the rise in price, I am still doing nothing and just holding as I think UOADEV is now rerated very differently from the old days when it didn't pay the 20 sen interim dividend. Going forward, if it pays dividends twice a year, 5 sen and 10 sen, I can hold on to this stock for an extremely long time.
2023-07-29 16:10
I think the news you refer to was an old news. It is confusing. I do hope for another 20 cents. haha
2023-08-24 14:39
where got haven't paid 20cents, announce another 20cents, as long as announced good news = great la :-)
2023-08-24 14:45
Someone told me that they avoided UOADEV because it keep holding to its massive cash pile for so many years without sharing. It is true. UOADEV kept its cash pile up and up until it is nearly 92 sen. This is actually unfair to different generations of shareholders in 2 ways:
1. The old shareholders who stood by UOADEV during the times in the past when it made large profits and grow the cash-pile. These shareholders, if they left prior to the 20 sen special dividend, loses out. Poor them.
2. The new shareholders who just bought UOADEV, when current year earnings is only 9-10 sen, but UOADEV looks set to declare 30 sen (=10 + 20). How fair is it that they got a windfall gain so quickly??
Should the first group of shareholders initiate a class action suit against UOADEV Board of Directors for being unfair in its dividend declarations?
Should the dividend policy of UOADEV be amended to avoid this sort of unfair situation from arising in the future?
Could the Board of Directors, over the past 5-10 years, declared a more equitable dividend sharing?
Investors should ask these questions to all Board of Directors in the AGMs, so that they don't forget the minority shareholders.
2023-08-28 19:40
Notwitstanding the above concerns to the Board of Directors, what should investors do today, given that even after distributing 20 sen special dividend, there is still a massive 72 sen net cash ...
What will the Board of Directors and Senior Management do with this 72 sen?
Your guess is as good as mine. I think it is not impossible for them to distribute another special dividend again next year or two. For many years in the future, if they earn 10 sen earnings, and pay 15 sen dividends, this can be sustained for at least 14 consecutive years. If they do this every other year, that's 28 consecutive years.
The size of cash pile they hold is ridiculously high. Some of us might no longer be alive 28 years from now.
2023-08-28 19:45
Shareholders should demand UOADEV to distribute the remaining 72 sen dividend.
Don't be like LCTITAN. From 5 billion net cash down to net debt and losing money. Total destroyer of wealth.
Hence, the biggest fear shareholders have for UOADEV is that Management, with that massive cash pile, go on to take silly risks with negative returns, only to benefit themselves.
Hence, shareholders should demand that the excess cash be distributed as additional special dividends to shareholders!
2023-08-28 19:48
For those who thinks that 72 sen net cash is small, consider that if UOADEV enhances its yearly dividend by 4 sen a year, and does this every consecutive years, it can afford to do this for the next 18 consecutive years to keep enhancing its dividends.
18 years is a VERY long time.
Market should get excited, because unlike old farts that never shares, UOADEV finally developed a conscience and start sharing 20 sen. The question now is - what next? What about the other 72 sen? Either way, speculators will bid this stock up because either way, whether special dividends or permanent additions of 4-5 sen, the period of enhanced dividends is very long i.e. there is now a potential catalysts ...
2023-08-28 19:54
Nice. 20 sen dividend (DRIP shares @ 1.39 + remaining cash) finally credited on 11 Sep.
2023-09-12 00:29
I am a fundamental investor so I don't trade. But I know many traders use technical to gauge market sentiments. Let me give the traders another data point.
I blog about value investing and I do case studies where I analyse and value companies. I think that there must be some interest in a particular company when it becomes one of the top searched case studies for the past month or so. So for those trading on sentiments, the UOA Ltd group came up in my top in my blog. I will leave you to decide whether this has any use from a technical trading perspective.
But if you want insights into Bursa listed companies go to my blog and read "Are these outstanding stocks - what to consider? (Bursa Malaysia)"
2023-09-23 09:11
Thanks to UOADEV (and LIIHEN and 12 other stocks in green for me today), my portfolio made a NEW HIGH today. This week is the 2nd time, yesterday was a NEW HIGH then and today edges up a bit higher. Thank-you Mr Market.
2023-10-13 17:41
1.84 since yesterday, hope can break the 1.80 for good & go up further....until next dividend announcement :-)
2024-01-31 09:36
DividendGuy67, do you know why Warren Buffet never get company he invested in to pay dividend? Tax is one reason. The other is it’s more important to keep cash in the company than paying out as dividend.
Anyone that runs a company properly will focus on equity growth. Investing cash will eventually translate to equity growth, surplus of cash only use to pay dividend.
Now I believe UOADEV has collected enough cash pile and making EPS 10 sen per annum and it’s more than fair giving out 100% as dividend payout. What’s the point of giving out whole 70sen per share cash reserve as dividend?
So that you can sell at RM 2.70 and the price drops all the way to RM 1 after? Only id*ot run makes decision like that. A good example of such id*ot will be TG. Out of all gloves counter, TG paid the most dividend and yet when party is over, TG is also the one suffered the most. Only thing market will be loyal is money. You want price to go up, earn more cash and keep it in the company.
2024-02-29 09:49
Dear RJ87,
Buffet/Berkshire doesn't pay dividend because for every $ retained, he is able to generate a high return on equity.
Unfortunately for UOADEV, it's NTA is high around 2.17, because of its Net Cash.
As you said, it's EPS is around say 11 sen (it was higher in the past).
The Return on Equity is only 11 / 217 ~ 5% which is on the low side.
A healthy property company with a sound business model should not be afraid to take up a small debt if need be, since it should be generating a profit every year.
Consider the alternative if it were to retain only 10 sen (or even nil) in Net Cash i.e. still have access to huge amounts of cash by borrowing if need be.
Then, it's NTA would drop from 2.17 down to say 1.5.
Then, the Return on Equity rises from 11 / 150 ~ 7.3%. That's better than 5% you saw earlier (but 7.3% is still not as compelling as many others).
In short, if Management doesn't know what to do with the Net Cash, then, a top quality management would consider giving it back to shareholders. Buffet has repeatedly said this many, many times, in case you are not aware of this concept.
2024-04-01 23:15
An example of Buffet's quotes can be gleaned in his shareholder letters. See 2020 letter to shareholders:
"BNSF has paid substantial dividends to Berkshire – $41.8 billion in total. The railroad pays us, however, only what remains after it both fulfills the needs of its business and maintains a cash balance of about $2 billion," Buffett wrote. "This conservative policy allows BNSF to borrow at low rates, independent of any guarantee of its debt by Berkshire."
The point is that he doesn't like BNSF to hoard huge amounts of cash, if the railroad doesn't know what to do with the excess cash. He demands BNSF to pay the excess cash out as dividends, so that he can receive that in cash and then reinvest to generate a higher return. In short, he insist on BNSF to be capital efficient. Hoarding excess cash is inefficient.
2024-04-01 23:21
I prefer UOADEV to pay me the excess cash as dividends, so that I can reinvest the cash received to earn much higher returns than 5% return on equity that UAODEV does now. Even if that cash is reinvested back into my EPF, I can expect to earn higher than what UOADEV can do. Hence, UOADEWV management should really consider paying out its excess cash as special dividends so that shareholders can reinvest that to earn higher returns that what UOADEV can do at present.
2024-04-01 23:23
Nice bullish engulfing close today. +4 sen +2.16%, striking distance to potentially break out above 1.92 which it couldn't break out since 2020. That was an ultra strong resistance that held for 3.7 years. If it convincingly breaks through this resistance, this stock can run. Best thing to do is still to sit tight, relax and enjoy. Thanks to UOADEV and 20 other green stocks to offset 12 red stocks, my portfolio made new all time high again today!
2024-04-02 21:24
Yes, usually the best thing to do for dividend stocks like this is to sit still and quietly watch the show.
2024-04-05 15:08
UOA Development Bhd (5200. KL) has announced a dividend of RM0.1 with an ex date of June 14, 2024 and a payment date of July 14, 2024.
2024-04-22 22:12
UOADEV closed 1.94, +5 sen and broke above that multiple horizontal resistance. What a lovely price action. UOADEV is one of my larger position - Top 16%. Can't complain!
Thanks to UOADEV and all my greens to offset my reds, my portfolio made new all time high again today, as KLCI also goes green! Hope everyone makes money! Thank-you Mr Market!
2024-05-06 21:48
@DividendGuy67, I just calculated (correct me if I'm wrong) total dividend given from IPO until today = RM1.76
2024-05-07 08:31
venture into DC also pls, if they hv the land bank, make use of it & ride the AI+DC wave :-)
2024-06-07 11:32
Strong weekly close at new high at 2.04, with higher volume than last week's. Nice. Thank-you Mr Market!
2024-06-07 22:44
@danchong, nothing new about the announcement, not sure why it affect the price, not complaining though :-)
2024-06-10 14:23
UOADEV edges up again. Thanks to UOADEV, TAMBUN, LCTITAN and many other greens offsetting reds, my portfolio made new all time high again today. Thank-you Mr Market!
2024-06-10 21:58
UOADEV managements gets above average / superior rating from me for managing this company. Back in 2016 or so, this company has sizeable debts, both long term and short term borrowings. Over the years, it runs its business profitably and receives cash and it uses that to pare down both LT and ST borrowings to practically zero. The Net Cash has ballooned to RM1.8-RM1.9 billion after paying out the Special Dividends. It's business generates cash nicely and it shares with shareholders. What's not to like. Historically, 15 sen dividend is not a problem, last year with Special dividend was 30 sen but even at 15 sen per year, divided by RM2, is 7.5% dividend yield, so, what's not to like for this stock?
The business is resilient - COVID did not impact its business - it continued to generate cash.
This is one of my top 20% holdings. My average entry is 1.62 excluding dividends. With dividends, it has gone down. Haven't sold a single share yet.
2024-06-10 22:05
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DividendGuy67
As a dividend investor who owns both UOADEV and UOAREIT, I am extremely happy that UOADEV will now pay for the first time, a 20 sen Interim Dividend in addition to its annual once a year "First and Final Dividend" which will no longer be a "First and Final". I cannot imagine how they can pay 20 sen + 10 sen Final = 30 sen Dividend when my cost price is only 1.59 excluding past dividends received. The dividend yield is unheard of! Wow, wow, wow!!!
2023-07-20 20:32