Thursday August 9, 2012
Astro to use bulk of IPO proceeds for capital expenditure
KUALA LUMPUR: Astro Malaysia Holdings Bhd aims to list on the Main Market of Bursa Malaysia and has unveiled its draft prospectus on the Securities’ Commission website yesterday.
The joint principal advisers and joint managing underwriters to this pending initial public offering (IPO) exercise are CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd.
The satellite television (SatTV) and digital radio broadcaster said in the prospectus that it planned to use 58% of the money that would potentially be raised for capital expenditure, 29.3% for repayment of bank borrowings, 8.6% for working capital and the rest for paying off its listing expenses.
The draft prospectus for the sole SatTV provider in Malaysia showed that its revenues were on a steady upward trend increasing from RM3.24bil in the financial year ended Jan 31 (FY10) to RM3.66bil in the next year and eventually grew to RM3.89bil in FY12.
Net profits including minority interests, however, showed a more erratic trend initially increasing from RM613.93mil in FY10 to RM827.48mil in FY11, then declining to RM629.62mil in FY12.
Trend for earnings before interest, taxes, depreciation and amortisation (EBITDA), however, showed an increasing trend as well from RM986.2mil in FY10 to RM1.37bil in the next year and then seeing further growth to RM1.41bil in FY12.
The SatTV services provider saw net profit margins recorded in FY12 at 16.2% while EBITDA margins were at 36.4% in the same financial year as well.
“Pro forma depreciation and amortisation increased by RM100.9mil, or 40.3%, from RM250.4mil for FY11 to RM351.3mil for FY12,” it said.
“The increase was primarily attributable to depreciation arising from a higher deployment of Astro B.yond set-top boxes as a result of an increase in HD and PVR take-up by new and existing subscribers as well conversion,” it added.
Astro Malaysia, which had previously been listed under the name Astro All Asia Networks Plc, provides SatTV services to both Malaysian and Bruneian homes, the draft prospectus showed.
It also showed that total intangible assets stood at RM1.76bil against the next biggest asset component of property, plant and equipment at RM1.71bil.
Astro Malaysia’s total equity as at April 30 was a negative RM1.13bil while it said its total indebtedness, which also comprised contingent liabilities, was at RM4.56bil.
“The deficit position is primarily due to the reorganisation, whereby for accounting consolidation purposes, our acquisition of Measat Broadcast Network Systems Sdn Bhd (MBNS), our largest operating subsidiary, was accounted for as a capital reorganisation of MBNS and the difference between the consideration for MBNS and the net assets of MBNS at the date of acquisition has been taken to capital reorganisation reserve,” it explained in the draft prospectus.
“Notwithstanding the above, after taking into account the public issue, our group’s shareholders’ equity as it appears in the pro forma consolidated balance sheets as at April 30, is no longer in deficit,” it said.
It was previously reported before that the Astro relisting could be raising up to US$1.5bil (RM4.65bil).