Fact Sheet CatchaIPO

8/3/2019 Fact Sheet CatchaIPO

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IPO Details

Listing Sought ACE Market of Bursa Malaysia

Sole Placement Agentand Sole Underwriter

OSK Investment Bank Berhad

Prospectus Launch Date 30 June 2011

Tentative Listing Date 22 July 2011

Issue Price Per Share RM0.75

Par Value Per Share RM0.10

Offering Structure:

Current Issued & Paid-UpShares (31 Dec 2010)

110,000,020 Shares

New Shares Offering:

Public 3,000,000 Shares

Private Placement 20,000,000 Shares

Offer for Sales 11,000,000 Shares

Enlarged Share Capital 133,000,020 Shares

Market CapitalizationUpon Listing

RM99,750,015.00

Valuation:

PER FYE2010A 12.3x

P/B FYE2010A 18.8x

(Based on enlarged sharecapital)

Proposed Dividend Policy None

Utilisation of Proceeds

Estimated

timeframe forutilization

% of total

grossproceeds

Working capital purposes 24 months 66.36

Capital and R&Dexpenditures

24 months 16.41

Estimated Listingexpenses

Upon listing 17.23

Substantial Shareholders

Pre-IPO Substantial Shareholders Direct(%)

Indirect(%)

Catcha Group Pte Ltd 81.57 -

Patrick Y-Kin Grove - 81.57

Kensuke Tsurumaru - 81.57

Lucas Robert Elliot - 81.57

Comperio Investment Management 5.90 -

Post-IPO Substantial Shareholders Direct(%)

Indirect(%)

Catcha Group Pte Ltd 59.20 -

Patrick Y-Kin Grove - 59.20

Kensuke Tsurumaru - 59.20

Lucas Robert Elliot - 59.20

Comperio Investment Management 4.88 -

Key Investment Highlights

Catcha Media Berhad (Catcha)

One of Southeast Asias leading media companies

Largest English language magazine publisher in Malaysia

Strategic partnership with Microsoft Corporation and Lowyat.net Wide product range targeted at various groups of readers

Diverse customer base of over 300 customers spanning from F&B; telecommunicatioautomotive products; fashion; retail and banking and finance industries.

Undemanding valuations at FYE10 PER of 12.3x vs domestic industry average of 15.4x

Company Profile

Catcha was incorporated in Malaysia on 5 October 2010 under the Companies Act, 1965 as a pubcompany limited by shares. Catcha is an investment holding company while its subsidiaries aprincipally involved in the publishing business and online media business.

The publishing business of Catcha operates traditional magazine publishing business, where contenproduced in magazine format then distributed to a readership group with advertising sold to braowners and/or advertising agencies that appears within the pages of the magazines published Catcha. Catchas publishing business consists of fourteen (14) magazine titles. The publish

business is a portfolio of magazine brands that Catcha license from international publishers comprisHaymarket Magazines Limited, Dennis Publishing Limited, CR Media Pte Ltd and Pacific MagazinPty Ltd, and magazine tit les owned by Catcha.

The online media business operates to develop content for, and to sell advertising space, promote amonetise online properties for Microsofts consumer online services in Malaysia. Catcha also promosell and monetise other online properties in Malaysia such as Lowyat.net.

Business Model

Competitive Advantage

Internet expertise with Catchas international proven track record in managing internet-basbusinesses. The founders of Catcha, Kensuke Tsurumaru and Patrick Y-Kin Grove, each have mothan a decade of experience in internet-based business in South East Asia. Catcha exclusivoperate, develop content for, sell advertising space, promote and monetize Microsofts Malaysiconsumer online services. The consumer online services include the MSN Malaysia portal, WindoLive Messenger and Windows Live Hotmail. Catcha also exclusively sells advertising space, promoand monetize on Lowyat.net.


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Competitive Advantage (Cont)

Local content is critical when it comes to capturing the mindshare of thelocal audience. Local content also allow brand owners and advertisingagencies contextual placement for their brand advertisement. Catcha hasmore than forty (40) local employees dedicated to content development

and creation, as well as a library of local content created over the pasteight (8) years.

International alliances. Catcha is the only Malaysian based company tohave an alliance with Microsoft on an exclusive basis to sell advertisingspace, promote and monetize Microsofts online properties in Malaysia.

Local relationship developed over the years through the publishingbusiness as Catcha worked closely with various local brand owners,advertising agencies and companies. Having a wide base of relationshipswith various brand owners, advertising agencies and companies willprovide Catcha the opportunity to grow their online media business.

Products and Services

Revenue Breakdown

Pro Forma (%)

FYE08 FYE09 FYE10

Publishing Business:

- Advertising Revenue

- Magazine Sales

- Other Magazine Income

- Licensing Income

Total Publishing Business

83.05

9.72

6.16

1.08

100.00

48.40

4.26

5.75

1.92

60.33

25.27

2.16

2.66

0.55

30.64Online Media Business:

- Advertising Revenue

- Other Income

Total Online Media Business

-

-

-

36.45

3.22

39.67

63.69

5.77

69.46

Less: Intercompany Transaction - - (0.10)

Total Revenue 100.00 100.00 100.00

Cost Breakdown

Pro Forma (%)

FYE08 FYE09 FYE10

Publishing Business:

- Printing and Magazine Costs

- Editorial Costs- Other Costs

- Commissions

Total Publishing Business

44.89

10.3834.09

10.64

100.00

19.98

4.7918.18

4.98

47.93

12.47

0.668.27

2.88

24.28

Online Media Business:

- Commissions

Total Online Media Business

-

-

52.07

52.07

75.88

75.88

Less: Intercompany Transaction - - (0.16)

Total Cost of Sales 100.00 100.00 100.00

Major Customers and Suppliers

Major Customers

(Advertising Space)

Length ofBusiness

Relationship

Total Revenue (%)

FYE08 FYE09 FY

Mindshare (M) Sdn Bhd 10 years 6.65 17.79 8

Carat Media Services (M) Sdn Bhd 7 years 5.61 10.43 9

Catcha Group Pte Ltd 1 year - - 25

Total Revenue 12.26 28.22 44

Major Suppliers

(Magazine Printing)

Length ofBusiness

Relationship

Total Purchase (%)

FYE08 FYE09 FY

KHL Printing Co Sdn Bhd 7 years 16.71 16.38 14

Percetakan Osacar Sdn Bhd 3 years 25.57 24.58 2

Setiakawan Printers Sdn Bhd 8 years 11.08 12.65 1

Total Purchase 53.36 53.61 38

Peer Comparison (Domestic)

Company

FYE10

Price

(RM)

MarketCap.

(RM000)

Revenue

(RM000)

NetProfit

(RM000)

PER

(x)

Catcha 0.75 99,750 35,424 8,103 12.3

Media Prima 2.90 2,919,418 1,546,643 242,294 12.8

StarPublications

3.38 2,496,348 1,061,700 184,941 13.5

Media Chinese 1.28 2,155,388 1,228,959 134,453 16.1

Jobstreet 2.90 920,655 117,107 40,980 22.3

MyEG 0.75 450,509 62,094 20,872 21.6

Berjaya Media 0.53 123,421 47,232 (4,653) N/A

Utusan Melayu 0.85 94,124 338,426 2,267 N/A

Asia Media 0.27 61,650 16,554 10,282 6.0

InnityCorporation

0.14 17,615 22,948 201 N/A

Simple Average (Excluding Catcha) 15.4

Source: Annual Reports of respective companies and Bloomberg

Peer Comparison (Regional)

Company

FYE10

Price Market Cap.

(000)

Net Profit

(000)

PER

(x)

Catcha RM0.75 RM99,750 RM8,103 12.3

Next Media HKD0.90 USD278,940 USD41,000 8.9

Tom Group HKD0.81 USD410,140 USD(21,620) N/A

Oriental Press HKD1.05 USD326,550 USD36,660 7.8

HK EconomicTimes

HKD2.82 USD154,150 USD11,020 10.5

SCMP Group HKD1.91 USD385,030 USD37,890 8.4

New Media Group HKD0.62 USD60,120 USD5,880 6.5

Singapore Press SGD3.83 USD4,940,000 USD357,380 13.1

Eastern Holdings SGD0.19 USD47,500 USD4,100 10.1

Simple Average (Excluding Catcha) 9.3

Source: Bloomberg


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Financial Highlights

Pro Forma (RM000)FYE2008 FYE2009 FYE2010

Income StatementRevenue 13,832 19,698 35,424

Cost of Sales (8,631) (14,547) (22,817)Gross Profit 5,201 5,151 12,607PBT (215) 240 10,823Net Profit (209) 236 8,103EBITDA (98) 324 10,925

Gross EPS (RM) # (0.0016) 0.0018 0.0814Net EPS (RM) # (0.0016) 0.0018 0.0609Effective Tax Rate (%) - 1.67 25.13

Balance SheetNon Current Assets - - 2,346Current Assets - - 16,899Total Assets - - 19,245Non Current Liabilities - - 84Current Liabilities - - 13,869Total Liabilities - - 13,953

Share Capital - - 11,000Shareholders' Equity - - 5,292

No. Of Shares In Issue ('000) - - 110,000Net Assets (RM000) - - 5,292Net Assets Per Share (RM) # - - 0.0398

Financial RatiosGross Profit Margin (%) 37.60 26.15 35.59PBT Margin (%) (1.55) 1.22 30.55Net Profit Margin (%) (1.5) 1.20 22.87EBITDA Margin (%) (0.70) 1.64 30.84Current Ratio (x) - - 1.22Gearing Ratio (x) - - Net CashReceivables turnover (days) 151Payables turnover (days) 109

Note:-

# Based on enlarged issued and paid-up share capital.

Documents

Fact Sheet CatchaIPO