Thursday, 26 July 2007
Reyphon Agriceutical Limited
(IPO booth at Raffles Place on a rainy day)
Reyphon Agriceutical Limited is a manufacturer of agriceutical products and its principal products are gibberellic acids and plant antibiotic. The prospectus is here.
Public offer: 2m shares at 39 cents
Placement offer: 76.6m shares
Closing date: 30 July 2007
Manager: Philip Capital
This is an interesting company amidst the hoo-har about food safety in China. China passes its first draft on Food Safety today. The tighter regulation for food safety will actually mean good news to ISO-certified agriceutical companies like Reyphon and i believed Reyphon is 'first-of-its-kind' listing on SGX. I cannot recall a similar companies in this field. The listing of this company also means a windfall for Sinomen as it holds 52% of Reyphon post-IPO.
The growth of this Company has been very impressive and it is likely that this growth can be sustained with the increased in production facilities post its listing. EPS for 2006 based on post ipo share of 313.8m shares is Singapore 2.694 cents. Assuming its profit grow by another 50% in 2007, the EPS will be 4.041 cents. Based on valuation matrix of 15-20x PE, the fair value price will range between 61 cents and 81 cents, a significant upside from IPO price and under current sentiments, it will even exceed my 81 cents fair value if investors priced towards 2008 estimates.
Just hoot it although i must say that it will be extremely tough to get it (what'z new ah?)