Corporate  |  FEBRUARY 20, 2013 3:40AM

Tune Ins marginally higher in debut

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tune-insuranceTune Ins Holdings Bhd (TIH) debuted at RM1.38 inching up three sen at the opening bell, and was among the most actively traded counters on the local bourse.

At 9.30am, TIH’s stock slipped to RM1.36 on the back of 5.39 million shares changing hands, with trading largely between the RM1.34 and RM1.38 bands.

General market sentiment was weak with the benchmark FBMKLCI in the red shortly after the start of trade.

TIH’s initial public offering (PO) generated considerable interest as its substantial shareholders include Tony Fernandes, and Kamarudin Meranun who are also the controlling shareholders of budget carrier AirAsia Bhd. TIH’s mainstay lies in the sale of airline insurance to AirAsia’s passengers.

At RM1.35, TIH’s IPO price is pegged at 14 times 2013’s forecast price earnings multiples, marking a 20 percent premium to the insurance industry average.

TIH’s IPO of 37.59 million shares to the public was oversubscribed by 2.07 times.

Initially TIH’s IPO was slated for February 22, but brought forward as the book building exercise closed earlier than scheduled.

TIH is Fernandes’ and Kamarudin’s first of three IPO for this year. The duo said that they plan to raise as much as US$500 million from all three floatation exercises.

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