COPE exits Malaysia-based Serba Dinamik with 8.9x return
COPE Private Equity, previously known as CMS Opus Private Equity, has completed its exit from Malaysian oil and gas services provider Serba Dinamik Holdings with a gross 8.9x money multiple and a 79.2% IRR.
The GP said it had steadily pared its minority interest in the company following an IPO in February 2017. Serba Dinamik’s stock closed at MYR3.54 on January 26, more than double of the offering price. The bulk of this appreciation has come since September and the Kuala Lumpur Composite Index is now trading at close to record highs.
Two funds invested MYR35 million ($9 million) in the company in 2013. These included COPE-KPF Opportunities 1 – a joint investment vehicle backed by COPE and KPF, a Malaysian financial services cooperative – and COPE Opportunities 2. Partial exits came when Serba Dinamik raised MYR600 million in its IPO. The two funds took MYR127.9 million off the table, reducing their combined holding from 16.07% to 8.02%. As of March, they had further pared it back to 4.76%.
Serba Dinamik provides engineering solutions to the oil and gas and power generation industries in Malaysia, Indonesia, the United Arab Emirates, Bahrain and the UK. It primarily offers operation and maintenance services involving gas and steam turbines, engines, and boilers in oil and gas production plants, oil and gas refineries, gas processing plants, and petrochemical manufacturing facilities.
The company’s largest and longest standing customer is Petronas and most of its employees are based in Malaysia. However, most of its recent growth has come through developing international business interests, particularly in the Middle East. Malaysia’s revenue share was 35% in 2016, down from 55% in 2013, while the Middle East share has increased from 19.5% to 51.4%.
Overall revenue came to MYR2.17 billion in 2016 compared to MYR1.4 billion the previous year. Net profit rose 57% over the same period to reach MYR245.8 million. On a four-year basis, revenue and net profit both grew approximately four-fold.
COPE is owned by asset manager Opus Capital and CMS Capital, the private equity arm of domestic conglomerate Cahya Mata Sarawak. It was established in 2005 and has more than MYR500 million in assets under management.
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