FinancialMTC: March 2019

Tuesday, 26 March 2019

Fortress Minerals Ltd IPO

Fortress Minerals Ltd is offering 75 mil placement shares (including 51,250,000 Cornerstone Shares) for its IPO on Catalist at $0.20 per share. There is no public offering. Market capitalization based on the Placement Price and Company’s post-Placement share capital of 500,000,000 Shares is 100mil.

The IPO will raise around S$12.50 mil after deducting lisiting expenses of S$2.5 mil. The use of proceeds is as below.

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Business Overview

The group is principally in the business of exploration, mining, production and sale of iron ore concentrate to steel mills and trading companies in the PRC and Malaysia.

Financial Highlight

FY16 to FY18 has been loss-making due to starting up cost and finally, in 1H2019 they are making a profit of $6.5mil and net profit of $2mil. It's nice of the group to notice that there will be an increasing distribution of dividends from 10% to 20% by 2021.

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What I like

Rebar price is recovering in the market from all times low.

Mining of high grade ore in turn lower mining cost but higher selling cost.

The company is finally making profit after all the setting up and there's a plan to pay dividends.

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What I don't like

Blasting is environmental unfriendly.

Main export is to PRC and many steel mills are force to shut down due to environmental issue.

Steel mill are changing from blasting to EAF by using recycle steel scraps.

Conclusion

I personally had some contacts with lime mining company located in Malaysia and got to know that the profit margin is very low for such mining company. As such there is no need to pay a premuin of 323% to NAV.

I believe can get lower price in open market however there will be lack of liquidity as the key shareholders will hold 80% of the shares.

Monday, 25 March 2019

SSB and SIA Bond. Which bond to choose?

Should i go for long term or short term?

Many bloggers had summarised the SIA Bond and what's the pro and con. You can view the chili rating from Singapore IPO and in-depth information from Investment Moats.

SIA is offering the bond at 3.03% for 5 years to mature while SSB requires 10 years to mature. But we have to note that SSB you can withdraw out anytime with a fee of $2 and your principle will be fully returned back.

Let's say I took a 5 years average of yield for SSB for the lowest rates in April, it will be 2.01% and while SIA is offering it at 3.03%. Which means the difference is 1.02% but I have to take up a lot of risks by applying for SIA bond.

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With that saying, I really don't see any point in applying for SIA Bond when there is a risk-free bond with slightly lower interest compared to SIA. But i will be tempted if SIA is issuing the bond at a higher rates.

Thursday, 14 March 2019

The American Express® Platinum Credit Card

Is it worth to pay $321 annual fee?

The Platinum is the lowest category across the Platinum range. The next will be Platinum Reserve (annual fee $535) followed by The Platinum Card (annual fee $1712).

Welcome offer for this card

Receive 1 Night Stay at Swissôtel The Stamford Singapore worth S$529 upon Card approval and payment of Annual Fee. However, I value the stay to be around $250 without breakfast base on Expedia rates.

Receive a Samsonite Sigma 76cm Expandable Spinner worth S$600 when you spend S$4,500 within the first 3 months of Card approval.

Complimentary The Far Card Classic Membership* (worth $425nett) with up to 50% savings on your total food bill at:

Fairmont Singapore
Swissôtel The Stamford Singapore
Swissôtel Merchant Court

Discover all the outlets under our Love Dining program at https://lovedining.americanexpress.com.sg/

50% off total bill when you dine with one guest

Swissôtel The Stamford

Amex will send you a letter of redemption when your card is approved and the annual fee is charged after receiving your first statement. The room type will be the Premier Room. The hotel doesn't have complimentary parking, during my stay I parked from 5 pm to the next day at 12 noon. It cost me $42. I believe there are cheaper alternative parking places but Raffles City is the most convenient for me.

Swissotel has gone into self-check-in and apparently, the system seems to have problem regenizing NRIC. End up, the friendly staff has to check in manually for me.

The room is spacious with sofa and table for you to have some foods or place a laptop for some quick work.

As usual 2 bottles of complementy water and there's an Nespresso machine available. Beside the shelf there are 2 wine glasses but I couldnt locate wine opener.

Toilet comes with rain shower and sadly without bath tub.

The Far Card Classic Membership

The membership comes with some vouchers which are quite useful to me. There are hotel stay vouchers, room upgrade vouchers, free wine/cake vouchers, 50% discount for group dining and some misc spas vouchers.

I visited Prego during my staycation and utilize one wine voucher from far membership. Total bill around $200 and after 50% discount, I paid $95.

House wine
Crema di Funghi
Fegato Grasso con Capsesante
Penne Carbonara
Prego

Conclusion

I personally doesn't like to pay annual fee for all my cards not even $192 for my dbs altitude card which gives me 5k dbs points. For this Amex Platinum card, I am more than willing to pay $321 for this card.

The staycation is worth $250 and with far membership 2x wines/cake which I value at $30 each. The annual fee is recovered by the stay and wines. As I normally dine at restaurants once a month, the 50% savings for two can be a lot of money saved for the year.

Sunday, 10 March 2019

Reclaims Global Limited IPO - Balloting Results

Reclaims Global Limited announced on 7th March 2019, there were 132 valid applications received for the 2 million Offer Shares available for public subscription. In total, these applicants applied for an aggregate of approximately 2.6 million Offer Shares, with application monies received amounting to approximately S$0.6 million.

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Based on the total of 20 million Invitation Shares and the total valid applications received amounting to approximately 20.6 million Invitation Shares (comprising valid applications received for approximately 2.6 million Offer Shares and 18 million Placement Shares), the IPO was approximately 1.03 times subscribed.

Balloting Results Table

Reclaims Global Limited will commence trading at 9 am on 11th March 2019. The SGX code is NEX.

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Mr Andrew Chew, Reclaims Global’s Chief Executive Officer and Executive Director welcome speech on media release.

We welcome all our new shareholders onboard and look forward to delivering shareholder value as we take Reclaims Global to its next phase of growth. We believe that this IPO will enhance our public image locally and globally and enable us to tap the capital markets to fund our business growth in Singapore.

Friday, 8 March 2019

UOB Repricing Price

Last week I wrote about the increase of UOB 36M FDPR while I'm waiting for the bank to get back to me on repricing price.

However, the results are disappointing for being loyalty. There is a repricing fee of $800 but it might be reduced to $500 subject to bank management decision.

My current interest rate is 1.80% (36M FDPR + 0.80%). Revised rate is 2.45% (36MFPDR + 0.80%).

Now the interesting part is what UOB is offering me.

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2 Years Fixed Rate

Yr 1: 2.58% (FIXED)

Yr 2: 2.58% (FIXED)

Thereafter: 2.58% (MR + 1.73%)

MR is the Bank’s prevailing UOB Loan Rate, currently at 0.85% per annum

2 Years Floating

Yr 1: 2.30% (MR + 1.45%)

Yr 2: 2.30% (MR + 1.45%)

Thereafter: 2.30% (MR + 1.45%)

MR is the Bank’s prevailing UOB Loan Rate, currently at 0.85% per annum

1 Month Sibor Pegged

1 Month SIBOR as at Feb 2019 = 1.82%

Yr 1: 1 Month SIBOR + 0.40%

Yr 2: 1 Month SIBOR + 0.40%

Thereafter: 1 Month SIBOR + 0.40%

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Conclusion

It doesnt make sense for me to take up 2 Years Fixed package as it's higher than my revised rate and i can reprice it shall one day the 36M rate is higher than fixed.

2 Years Floating is not attractive to me as i will be saving 0.15% in interest thus I won't choose this package too.

1 Month Sibor package might seems to be the best package compared to the other two packages. If you read my previous post, HSBC also have 1 month sibor package and their spread is 0.25% compare to UOB 0.4% spread.

The wonderful thing is, I do not need to pay for lawyer fee and valuation fees and yet i can enjoy lower interest.

Tuesday, 5 March 2019

April 2019 SSB 2.16% for 10 year and 1.96% for 1 year

No place to park your excess funds and want a flexible place to park while gaining a decent yield. SSB is the place for you to park your funds.

April 2019 SSB give an average interest rate of 2.16% over the next 10 years and can be applied thru DBS/POSB, OCBC and UOB ATMs and Internet Banking.
This bond will be reflected as “ SBAPR19 GX19040X ” in your CDP statement or “GX19040X” in your SRS statement and “ CDP-SBAPR19 ” in your bank statement.

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The 1st interest payment will be made on 1 Oct 2019, and subsequently every six months on 1 Oct and 1 Apr every year.

If you invest $1000, you will receive $218 in interest if you hold the bond till maturity in 2029.

Yearly and average interst rate as below.

Past Month SSB Rates

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Friday, 1 March 2019

Sim Leisure Group Ltd IPO – Balloting Results

Sim Leisure Group debuts on Catalist below IPO price

Sim Leisure Group Ltd commence trading today with SGX name Sim Leisure and code URR. Sim Leisure Group Ltd opened on the Catalist board at S$0.17 below its IPO price of S$0.22 a drop of 22.8%. The write up of IPO can be found here.

Balloting Results

The balloting results shown that there isn't any interest from the public for this IPO.