Tune Ins Holdings Berhad Course Work

Published: 2021-06-21 23:48:57
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Category: Information, Business, Investment

Type of paper: Essay

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This paper will discuss the 4 broad areas of information that are available in the prospectus of Tune Ins Holdings Berhad. Also, the paper will cover how these four factors can help investors to choose whether to invest in the company or not.

Four Information Areas and Importance

Four important areas of information in the prospectus that can help investors to buy securities from Tune Ins Holdings Berhad:

Business Overview: The business overview section in the prospectus is useful to understand the Initial Public Offering by the company. This section offers information to the investors that help them to develop a clearer view about what the company does and how successful is their business. This section of the prospectus comprises of the company background, what Tune do for making profit among other important details of their business. Tune Ins Holdings Berhad, is an insurance product manager that designs and sells insurance products and services to the customer base of their online partners, Tune Hotels, Air Asia Expedia and Air Asia. Mainly, their insurance products are made of Travel Protection Plans. In their prospectus, they have mentioned that Tune Ins Holdings Berhad presently has agreements with Air Asia Berhad and the majority of their affiliates for past five years. Also, the main competitive strength of Tune Ins Holding Berhad is their exclusive relationship with Air Asia that makes them the only insurance agent serving Air Asia. Since, the tourism industry is growing all the time, the increasing importance to have travel insurance shows the promise and strong potential of the business (Tune Ins Holding Berhad, 2012, p. 59-64).

Impressive Profit Growth: The financial information section is also important for making investment decision. This section is of great concern for most of the investors, because most of the investors are looking to make profit on their investments. Also, this section helps investors to understand the financial strengths by analyzing and identifying the share worth of the company. On the basis of information available in this section, the investor can determine if it is a wise call to buy the securities. The section is divided into two sub-sections, the past and future financial information. In the past financial information available in the prospectus an increase in the operating profit and revenues before the tax can be seen every year since the FY 2010 to FY 2012. The profit before tax in the FY 2009 was RM 17,233,000, FY 2010 it was RM 26,422,000 and it was RM 32,483,000 in the FY 2012 (Tune Ins Holding Berhad, 2012, p. 271-272). The increased profit before tax indicates that Tune is making a profit and the positive financial information is proof of their success.

Dependency on Air Asia: One of the most important sections of the prospectus is called Risk factors. Investors should go through this section of the prospectus to understand the risks associated with the performance of the company. The dependency of Tune Ins Holding Berhad on Air Asia is highlighted in the risks. The main business of Tune Ins Holding Berhad is to sell travel protection insurance that they sell mainly to the customer base of Air Asia, serving as their sole insurance agent. In the future of this partnership comes to an end, it can have a huge impact on the success of Tune Ins Holding Berhad (Tune Ins Holding Berhad, 2012, p. 29).

Management and Leaders: Finally, the prospectus shares information about the directors, significant shareholders and the promoters of Tune Ins Holding Berhad. It is important for the investors to know about the leaders of the organization from which they are looking to purchase securities. Great leadership and management can lead their company and guide them towards success. Management skills and knowledge are enough to convince some investors to make the choice of purchasing the securities from Tune Ins Holding Berhad (Tune Ins Holding Berhad, 2012, p. 170-184).

Reference List

Tune Ins Holding Berhad. (2012). Prospectus: Tune Ins Holding Berhad. Available: http://www.the-digital-insurer.com/wp-content/uploads/2013/03/Tune-Insurance-IPO-Prospectus.pdf. Last accessed 30 May 2014.
Bang, J.H. (2013). Uncertainty + Complexity = Today’s Reality for Leaders in International Public Organisations. http://www.mce-ama.com/leadership-challenges-and-skills-for-IPO-managers/. Last accessed 30 May 2014.
Theborneopost. (2014). Tune Ins records robust 2013 driven by successful business model mix. http://www.theborneopost.com/2014/05/19/tune-ins-records-robust-2013-driven-by-successful-business-model-mix/. Last accessed 30 May 2014.
Rameshchandra, K. (2013). Tune Ins Holdings Berhad - Will cross-selling through AirAsia be as easy as it thinks?. https://sg.finance.yahoo.com/news/tune-ins-holdings-berhad-cross-080000984.html. Last accessed 30 May 2014.
Tune Insurance. (2013). RAM Ratings assigns A1/P1 ratings to Tune Money GenRe. http://www.tuneinsurance.com/group/press/pdf_51a8483b04837.pdf. Last accessed 30 May 2014.
Foster, S.J., Kovach, A.J. & MacDonald, R. (2013). An IPO is Still the Holy Grail. https://www.spencerstuart.com/research-and-insight/an-ipo-is-still-the-holy-grail-is-your-team-prepared. Last accessed 30 May 2014.
E &Y. (n.d.). Secrets of successful IPOs. http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/Ernst---Youngs-guide-to-going-public---IPO-readiness--going-public-and-winning. Last accessed 30 May 2014.
Kennon, J. (n.d.). 4 Things to Look for in an Investment. http://beginnersinvest.about.com/cs/newinvestors/a/040901a.htm. Last accessed 30 May 2014.
Kanter, R.M. (2011). How Great Companies Think Differently.
http://hbr.org/2011/11/how-great-companies-think-differently/ar/1. Last accessed 30 May 2014.

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