Zico (IPO)

Zico: placing out 48m shares at $0.30 each for a listing on Catalist. There is no public tranche. IPO will close on 7 Nov at 12pm, listing on 11 Nov. Market cap is $80m based on IPO price. Zico is the short form for Zaid Ibrahim, a well known law firm in Msia with more than 25 yrs of history. The revenue has been growing rapidly for the last 3 years but it is still a lowly RM19m for FY2013. Given this is advisory business, the net margin is high and the profit for FY2013 was RM11.6m According to the prospectus, Zico is listing at a historical PE of ~ 23x. According to Mr IPO blog which covers Singapore IPO, the valuation is very high, sources said that the placement was very well received by the friends of ZICO and the books were covered very quickly.