FinancialMTC: IPO

Showing posts with label IPO. Show all posts

Wednesday, 18 September 2019

Lendlease Global Commercial Trust Management - IPO

Lendlease Global Commercial Trust Management is offering 387.5 mil shares for it's IPO on SGX Main Board at $0.88 per shares. The public offer opens on Sept 25 at 9 pm and closes on Sept 30 at 12 pm and expected to list on Oct 2.

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Business Overview

The Lendlease Group is a leading international property and infrastructure group, with operations in Australia, Asia, Europe and the Americas. Headquartered in Sydney, Australia, the Lendlease Group has a strong track record of helping deliver innovative and sustainable property and infrastructure solutions globally, with a core expertise in shaping cities and
creating strong and connected communities.

Lendlease Global REIT will comprise a leasehold interest in one retail property located in Singapore and a freehold office property located in Milan, Italy. The properties are value at approximately S$1,405.3 million as at 31 July 2019.

The details of each of these properties are as follows:

A 99-year leasehold interest1 in 313@somerset, which is a retail property located in Singapore (the “Singapore Property”); and

A freehold interest in Sky Complex, which comprises three office buildings located in Milan, Italy (the “Milan Property”).

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Balanced Lease Expiry Profile

A total of 12.2% of the existing leases of the IPO Portfolio by
leased NLA as at 30 June 2019 will expire in FY2020 and FY2021 and a total of 43.0% of the existing leases of the IPO Portfolio by Gross Rental Income for the month of June 2019 will expire in FY2020 and FY2021.

Sky Italia holds a single lease over the Milan Property, Sky Complex, which it has held since 2008. Sky’s current lease term extends until 2032, which assists in underpinning the income stability of the IPO Portfolio.

Top 10 Tenants by Gross Rental Income

The IPO Portfolio has a high quality and well-diversified committed tenant
base of 150 tenants across 14 trade sectors. Approximately 71.1% of Lendlease Global REIT’s Gross Rental Income will be derived from a multi-tenanted property based on Lendlease Global REIT’s Gross Rental Income for the month of June 2019.

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Committed Occupancy

The IPO Portfolio has a committed occupancy rate of 99.9% as at 30 June 2019. The Properties have been successful in maintaining a consistently high committed occupancy rate of at least 99.0% since 2016.

Financial Highlight

Based on the Offering Price, assuming that the Over-Allotment Option is not exercised. Excess of $33 milion will be use as working capital.

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The Forecast and Projected Statements of Profit or Loss for the Lendlease Global REIT Group for FY 2020 and 2021 before adjustment will be negative $15 millions and profit $45 millions.

Dividends yield will be 5.80% and 6.01% for FY 2020 and FY 2021.

Conclusion

I like the tenants 313 is currently having like Food Republic and Hai Di Lao. Not forgetting the other top contributors to the GRI also for Sky Complex the occupancy is 100%. The dividend yield is also decent to me.

However, Sky Italia GRI is close to 30% which can be quite worrying if they decided to pull out from the lease.

Wednesday, 3 July 2019

ST Group Food Industries Holdings Limited – Balloting Results

ST Group Food Industries Holdings Limited is offering 30.077 mil placement shares for its IPO on Catalist at $0.26 per share. The IPO write up is available here.

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The board of directors is pleased to announce that, as at the close of the Application List at 12.00 noon (Singapore time) on 1 July 2019, all the 30,077,000 Placement Shares available for subscription have been validly and fully subscribed for and application monies received for these Placement Shares amounted to S$7.8 million. There is no update on the number of times oversubscribed.

The allocation of placement shares is as follow.

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Mr. Saw Tatt Ghee (蘇達義), Executive Chairman and CEO of the Company, said,

We would like to extend a warm welcome to all our new shareholders. Thank you for your vote of confidence, and for believing in the growth story and future of ST Group. We are extremely excited to embark on this new journey with you. Our status as a listed company provides us a platform to enhance the visibility of our brands across our key geographical markets. Alongside the enlarged capital base from our successful listing, we believe we are now better-placed to build on our successes over the past seven years and elevate our business to the next level.

Thursday, 27 June 2019

ST Group Food Industries Holdings Limited - IPO

Placement of 30,077,000 Placement Shares at S$0.26 each, payable in full on application.

ST Group Food Industries Holdings Limited is offering 30.077 mil placement shares for its IPO on Catalist at $0.26 per share. Market capitalization based on 246 mil shares is S$64 mil. The offer will close on 1st July at 12 noon and start trading on 3rd July at 9 am.

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Business Overview

The Company with a history dating back to 2011, It is an established F&B group headquartered in Australia, which owns exclusive franchise and licence rights to the following 6 internationally popular F&B brands or concepts in various territories in Australia, New Zealand, Malaysia and England, United Kingdom – "PappaRich", "NeNe Chicken", "Hokkaido Baked Cheese Tart", "Gong Cha", "IPPUDO" and "iDarts". We have also developed 2 of our own brands – "PAFU" and "KURIMU".

The Company has 38 owned outlets, 63 sub-franchised / sub-licensed outlets and cover 4 geographical markets.

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Financial Highlight

Base on the offered document, the group has been growing steadily on their revenue on average by A$6 mil yearly from FY2016 to FY2018. Just HY2019 the revenue is A$24 mil and we could see that there is a possiblities it can hit A$50 mil when FY close.

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Valuation

Based on the price of the Placement Shares and the Group’s historical net earnings per share for the financial year ended 31 December 2018, the Group’s price-to-earnings ratio, calculated using it's pre-IPO issued and paid-up share capital is 19.5 times and PB is 4.26 times.

Conclusion

52% of the group outlets in Australia and New Zealand are
leased from landlords of major shopping centers. The group also has a central kitchen which will serve the operations in Australia and New Zealand.

What I like about their operating model is the sales are generated by F&B retails and they are not overly dependent on major customers. The group will also expend into Malaysia by setting up a central kitchen and corporate office to support the business in Malaysia.

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Tuesday, 18 June 2019

TrickleStar Limited IPO - Balloting Results

TrickleStar Limited is offering 15m placement shares for its IPO on Catalist at $0.26 per share. The IPO write up can be read here.

The placement shares are fully subscribed at 12.00 noon on 14 June 2019.

The balloting results as below.

Thursday, 6 June 2019

TrickleStar Limited IPO

TrickleStar Limited is offering 15m placement shares for its IPO on Catalist at $0.26 per share. Market capitalization based on 81.791m shares is S$21.27 mil. The offer will close on 14th June at 12 noon and start trading on 18th June at 9 am.

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Business Overview

The Company design and supply affordable, simple and easy-to-use energy-saving products to help consumers reduce energy consumption in their homes and workplaces. These products also protect consumer devices and help to minimise environmental impact by reducing energy wastage
from appliances and consumer electronics products.

The products consist of energy-saving products includes Advanced Powerstrips, load controllers, energy meters, energy monitors and surge
protectors.

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The products consist of energy-saving products includes Advanced Powerstrips, load controllers, energy meters, energy monitors and surge
protectors.

Financial Highlight

Base on the offered document, the group had turned from loss to profit of USD 2m in FY2018 and close to 200% increase from FY17.

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Valuation

Based on the price of the Placement Shares and the Group’s historical net earnings per share for the financial year ended 31 December 2018, the Group’s price-to-earnings ratio, calculated using its pre-IPO issued and paid-up share capital is 6.53 times and PB is 1.79 times.

Dividend

The group is committed to a dividend payout ratio of not less than 50.0% of our Group’s consolidated net profit after tax, excluding non-controlling interests and non-recurring, one-off and exceptional items, whether as an annual dividend or an interim dividend.

Conclusion

For this IPO, the group is raising SGD $2.4m which is a small amount for them to use as working capital. Their products will be popular for new homes or commercial properties where users are looking at saving energy for their daily usage and not forgetting the smart home. Since its a placement only IPO. let's see how the market determines the price of this company. Given it's low PE and PB, hope the faith is there.

Friday, 31 May 2019

Alliance Healthcare Group Limited IPO - Balloting Results

Alliance Healthcare Group announced on 30th May 2019, there were 480 valid applications received for the 1 million Offer Shares available for public subscription. In total, these applicants applied for an aggregate of approximately 18.3 million Offer Shares, with application monies received amounting to approximately S$3.7 million.

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Excluding applications for 565,000 Placement Shares by connected persons and the persons mentioned in Rule 428 of the Rules of Catalist, based on the Invitation size of 32,000,000 Invitation Shares and the total remaining valid applications received amounting to 48,823,000 Invitation Shares (comprising valid applications received for 18,388,000 Public Offer Shares and 30,435,000 Placement Shares), the Invitation was approximately 1.53 times subscribed.

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Alliance Healthcare Group will commence trading at 9 am on 31st May 2019. The SGX code is MIJ.

Dr Barry Thng Lip Mong (唐立茂), Executive Chairman and CEO of Alliance Healthcare welcome speech on media release.

We are heartened by the positive response to our IPO, which is an
indication of investors’ confidence in Alliance Healthcare’s business fundamentals and commitment towards delivering cost-effective and evidence-based medical solutions by leveraging the use of technology.

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Monday, 27 May 2019

Alliance Healthcare Group Limited IPO

ALLIANCE HEALTHCARE GROUP LIMITED is offering 32,000,000 shares for its IPO on Catalistat at $0.20 per share. The Group is offering 1mil shares to public and 31 mil shares as placement.

Market capitalization based on the offer price S$41.6 mil.

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Business Overview

The group provide managed healthcare solutions to corporations and insurance companies by establishing an extensive network of medical services providers to deliver healthcare services to the employees of corporations or, as the case may be, insured members or policyholders
of insurance companies.

Alliance Healthcare Network, comprises:

16 GP clinics under the “My Family Clinic” name, one GP clinic
under the “Lee Clinic Pte. Ltd.” name and five specialist clinics
which we own and operate in Singapore;
our panel of over 1,000 medical services providers in Singapore
and Johor Bahru in Malaysia; and
our tie-ups with various GRHs;

Financial Highlight

The group revenue increase around 14% YoY and pharmaceutical services business segment contribute approximately S$2.2 million out of S$4.4 mil increase from FY17 to FY18.

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(S$’000)	Audited FY2016	Audited FY2017	Audited FY2018
Revenue	25,845.6	29,438.7	33,816.6
Profit before tax	899.5	1,865.5	3,417.9
Profit after tax	829.9	1,742.2	3,476.7

What I like

GP clinics are in demend and with Managed healthcare solutions, more companies and insurance will work with the group.

Wholesale pharmaceutical license issued by the Health Science Authority (HSA), which allows it to undertake the wholesale distribution of pharmaceutical products to hospitals, pharmacies and clinics in Singapore.

What I don’t like

Over heavily depending on panel treatment where payment might not come in due to closure or dispute.

Subject to healthcare laws and regulations including licensing requirements which are subject to fines or loss of license.

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Conclusion

With the aging population, GP services will be in demand and wholesales of pharmaceutical products is profiting. P/E at 11x and NAV at 6.03 cents. Dividend yield at 2.5%. This stock is worth a punt at $0.20 a shares. CIMB is doing book building and will close on 21st May. Contact your RM if your interested for placement.

Friday, 17 May 2019

Alliance Healthcare Group Limited IPO

ALLIANCE HEALTHCARE GROUP LIMITED is offering 175,888,352 shares for its IPO on Catalistat $0.20 per share. Market capitalization based on the offer price S$35 mil. (Figure to be final after final offer document is lodge)

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Business Overview

Alliance Healthcare Network, comprises:

16 GP clinics under the “My Family Clinic” name, one GP clinic
under the “Lee Clinic Pte. Ltd.” name and five specialist clinics
which we own and operate in Singapore;
our panel of over 1,000 medical services providers in Singapore
and Johor Bahru in Malaysia; and
our tie-ups with various GRHs;

Financial Highlight

The group revenue increase around 14% YoY and pharmaceutical services business segment contribute approximately S$2.2 million out of S$4.4 mil increase from FY17 to FY18.

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(S$’000)	Audited FY2016	Audited FY2017	Audited FY2018
Revenue	25,845.6	29,438.7	33,816.6
Profit before tax	899.5	1,865.5	3,417.9
Profit after tax	829.9	1,742.2	3,476.7

What I like

GP clinics are in demend and with Managed healthcare solutions, more companies and insurance will work with the group.

What I don’t like

Over heavily depending on panel treatment where payment might not come in due to closure or dispute.

Subject to healthcare laws and regulations including licensing requirements which are subject to fines or loss of license.

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Conclusion

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.

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, 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.

Thursday, 24 January 2019

Grand Venture Technology Limited IPO - Balloting Results

Grand Venture Technology Limited announced that it's IPO Garner "STRONG SUPPORT" in its Press Release. 42,918 mil shares was 1.3x subscribed. Public shares was oversubscrib at 12,568 mil shares at 15.66x. The IPO write up is here.

Balloting table as below

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Grand Venture Technology Limited commence trading today with SGX name Grand Venture and code JLB. Grand Venture opened on the Catalist board at S$0.27 below its IPO price of S$0.275 a share on Wednesday and close at S$0.270 a share.

Thursday, 10 January 2019

Grand Venture Technology Limited IPO

The first IPO for 2019. Hope It's a good start for the new year.

Grand Venture Technology Limited is offering 42.918mil shares for its IPO on Catalist at $0.275 per share. These comprise a public tranche of 800,000 shares and a placement tranche of 42,118,000 shares. The IPO will close on 11th Jan 2019 at 12 pm and starts trading on 23rd Jan 2019. The market cap for this IPO is $64.4mil.

Company Overview

Established in Singapore in 2012, Grand Venture Technology (“GVT”) is a trusted manufacturing solutions and services provider for the semiconductor, analytical life sciences, electronics and other industries. Backed by a highly experienced management team, GVT delivers engineering, assembly, testing and product life cycle management solutions. GVT operates out of its facilities in Singapore, Malaysia (Penang) and the PRC (Suzhou) to serve a portfolio of customers that are some of the largest OEMs in these industries.

What's their business

GVT provide manufacturing solutions and services provider for the semiconductor, analytical life sciences, electronics and other industries.

How do GVT fare in the business

The loss in FY2015 is due to low production volume as GVT is fulfilling the audit and accreditation process to be an approved vendor and to clear first articles inspections of certain new customers and products. FY2016 GVT ramp up their production causing the gross profit to increase.

GVT is listing at PE ration of around 11.2 PE and $0.078 NAV which is quite expensive compare market cap to equity.

What is good about GVT

Good range of products from small high-precision components to large structural components.
10-year agreement with SICO Technology GmbH and Sico Asia Quartz Pte Ltd to build up quartz and ceramic machining capabilities which not much competitions in the market with the knowledge.
Track record in optimizing operations, implementing strategic plans and creating shareholder value
Losses in FY 2015, other than that YoY is making profit and new components are in production for better margin.

What is not so good about GVT

Small pool of major customers and they accounted for an aggregate of 78.7%, 92.3%, 89.7% and 94.8% FY2015, FY2016, FY2017 and HY2018 respectively.
Raw material prices for aluminium and stainless steel fluctuate and will have a significate impact on P&L.

Conclusion

At an expensive listing price, I feel that It's not worth to invest and the risk of raw materials supply and pricing. The profit margin might not be as current and might see a big drop compare to current profit margin.