Kina Securities - IPO

Kina Securities Limited (KSL) - KSL hits the ASX tomorrow. Look at our regional compco and the PE matrix below there's plenty left on the table for investors here. Kina has operated in PNG for some 30 years with a management team and board that understand the playing field. The IPO occurred due to the acquisition of the Maybank which is PNG's 4th bank. To enhance the board and this acquisition David Foster, ex-CEO of the Suncorp Bank, joined as part of the process. This opportunity is not a call on the PNG macro but an acquisition and market share gain opportunity. The addition of Maybank will allow Kina to leverage off its brand, systems and 14000 existing accounts to offer traditional banking services. The synergy benefits of this acquisition are very underplayed with potential for upside surprise. The IPO was pitched on an FY15 PE of 7.5x and an annualised dividend yield of 9.6%. The PNG banking market is dominated by the Bank of South Pacific, ANZ and WBC with a marketshare gain opportunity for Kina ahead.