Public IB Research values Main Market-bound FoundPac at 63 sen

-A +A

KUALA LUMPUR (Dec 19): Public IB Research has valued Main Market-bound FoundPac Group Bhd (FoundPac) at 63 sen.

FoundPac is scheduled for listing on Dec 29. The company commenced its operations in the trading of precision engineering parts in May 2005.

In a note today, Public IB Research said that over the years, FoundPac has expanded into design, development and manufacturing activities, serving semiconductor companies based in North America, Europe and Asia.

It said the group aims to grow its production capacity through acquisition of new machines, diversify its customer base to include end-user industries and establish more sales offices in overseas markets.

“FoundPac has a clean balance sheet with a net cash of RM20 million. Proceeds from the public offering will mainly be utilized for capital expenditure and working capital purposes.

“We value FoundPac at 63sen, pegging it at 13x FY18F earnings. Our fair value implies a potential upside of 17%,” it said.