Are you willing to buy Maxis IPO for RM5.20 at PE 17?

Maxis, after privatized and delisted for some times, is coming back to KLSE again with a new IPO.

According to the latest news, they will not be issuing new shares, but will offer 2.25 billion shares, representing 30% of its existing share capital. The estimated IPO price is RM5.20 per share.

With this information, let's do some calculation.

The total shares of Maxis is 2.25 billion / 30% = 7.5 billion.

For your information, Maxis made a revenue of RM8.45 billion and net profit of RM2.4 billion in 2008. For the 1st half year of 2009, revenue is RM4.24 billion and net profit is RM1.14 billion.

Let's estimate the EPS of Maxis now.

I'll estimate the net profit with the following simple guessing formula:

Multiply the half year net profit of 2009 by 2 to get a full year figure.

1.14 x 2 = 2.28

With this, the EPS will be 2.28/7.5 = 0.304

If the IPO price is 5.20, then the PE will be 5.2/0.304 = 17.11

Maxis stated that they plan to give back 75% of net profit as dividend. So the dividend will be around 0.304 x 75% = 0.228.

And the estimated DY will then be 0.228/5.20 = 4.38%

So, are you willing to buy Maxis IPO at the PE of around 17?

I think they come out with the proposed IPO price by referencing to Digi (6947), which currently has a PE of around 15.

Currently, even Digi doesn't seem attractive to me, so why should I buy Maxis at a higher PE and lower DY? This IPO is not attractive to me from the fundamental perspective.

Disclaimer: This article is intended for sharing of point of view only. It is not an advice or recommendation to buy or sell any of the mentioned stock counters. You should do your own homework before trading in Bursa Malaysia.

Software update to v2.80 available for Sing/Mal version of Garmin Nuvi 205/205w/255w

The new software version 2.80 is now available for Sing/Mal version of Garmin Nuvi 205/205w/255w.

This version will:

• Synchronize to English v5.30
• Update GPS firmware to v3.90

Here are the steps I have taken to successfully updated my Nuvi 255w.

Download the installation file from Garmin's website (link provided at the end of this article). The filename is nuvi255W_SG_v280.exe with the size of 10,672kb.

Remove the SD card (that I use to store additional maps) from the GPS slot.

Connect the GPS to my computer with USB cable and access to its storage.

Rename the file /Garmin/GPX/Current.gpx to /Garmin/GPX/temp.gpx. During the update process, a new Current.gpx file will be created and data in this temp.gpx will be restored to the new Current.gpx. If this step is not taken, you might lost your saved waypoints and/or favourites.

Delete these 3 files from /Garmin/Voice folder:

• English_American_Jack.vpm
• English_Australian_Karen.vpm
• English_British_Daniel.vpm

Don't worry, they'll be replaced with new version of voice files during the update process.

Run the nuvi255W_SG_v280.exe from the computer. It will copy over some files to the GPS.

Safely unplug the USB cable and let the GPS reboot by itself. You will see the message of "Software loading..." on the screen of the GPS while it is performing the update.

In less than a minute, the GPS will automatically reboot itself after the update is completed.

Now the GPS is loaded with new software v2.80 (successfully updated from the previous v2.70).

Quite disappointedly, there is still no ecoRoute feature in this v2.80 of Nuvi software for Sing/Mal 205/205w/255w units.

Click here to download the installation file for Garmin Nuvi 205/205w/255w Sing/Mal v2.80 software.

Paypal now allows withdrawal of money directly to Malaysia bank account

Good new for Malaysian Paypal users!

Now you can withdraw your money from Paypal directly to your bank account in Malaysia.

Withdrawal is free of charge if the amount is above RM400. Else RM3 is chargeable.

Banks which can accept money transfer from Paypal are:

• Affin Bank (PHBMMYKL)
• Alliance Bank (MFBBMYKL)
• Ambank (ARBKMYKL)
• Bank Islam (BIMBMYKL)
• Bank Kerjasama Rakyat (BKRMMYK1)
• Bank Muamalat (BMMBMYKL)
• Bank of America (BOFAMY2X)
• Bank Simpanan Nasional (BSNAMYK1)
• CIMB Bank (CIBBMYKL)
• Citibank (CITIMYKL)
• Deustche Bank (DEUTMYKL)
• EON Bank (EOBBMYKL)
• Hong Leong Bank (HLBBMYKL)
• HSBC Bank (HBMBMYKL)
• Maybank (MBBEMYKL)
• OCBC Bank (OCBCMYKL)
• Public Bank (PBBEMYKL)
• RHB Bank (RHBBMYKL)
• Standard Chartered Bank (SCBLMYKX)
• Royal Bank of Scotland (ABNAMYKL)
• UOB (UOVBMYKL)

The 8 characters code in bracket is the MEPS bank routing code which you need to provide during withdrawal from Paypal. You will also need to provide your bank account number too.

The withdrawal will normally take 2-3 days of processing.