KUALA LUMPUR (July 20): Atlan Holdings Bhd's 82.29%-owned subsidiary Duty Free International Ltd will place out new shares to fulfill the 25% public shareholding requirement for a planned listing on the Hong Kong Stock Exchange.
Duty Free International said this in a statement to the Singapore bourse. Today, Atlan (fundamental: 1.4; valuation: 1.5) had informed Bursa Malaysia about the corporate development.
According to Duty Free International's statement, the company planned to place out new shares as Atlan does not intend to sell any existing shares in Duty Free International.
“As such, for purposes of the proposed HK Dual Listing, the company (Duty Free International) will fulfil the 25% public float requirement by placing out new shares in the capital of the company in due course,” Duty Free International said.
For now, it is uncertain if the placement of new shares will dilute existing shareholders' stakes.
It is worth noting that Malaysian tycoon Tan Sri Vincent Tan owns 26.3% in Atlan as at June 10 this year, according to Atlan's statement to Bursa Malaysia.
Last Wednesday (July 15), Duty Free International announced its intention to be listed on the Hong Kong bourse.
Duty Free International said a dual listing would allow it to tap two of Asia's most dynamic equity markets when the opportunity arises.
It said a dual listing would widen the investor base of the company via a broader range of private and institutional investors
In Malaysia, Atlan shares have not been traded so far today. The stock was last transacted at RM4.69, giving it a market capitalisation of RM1.19 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)