Monday, 5 October 2009

Goodland Group Limited

Goodland Group Limited is placing 30m new shares at 20cents each for a Catalist listing.  The company is a boutique property developer engaged in the development and sale of residential properties in Singapore.  The company focused on small and medium sized landed housing and residential apartments.The offer will close on 6 Oct 2009.

Based on the IPO price, the company is priced at a premium to its NTA by 266% and at 16.7 times FY 2008 PER based on the post IPO share capital and pro forma earnings assuming the service agreements were in place.

Personally, i never like property developers as the earnings are likely to be lumpy, subject to market cycles and hard to predict as revenue comes on stream. The overpriced IPO is not helping and with the weak market sentiments, it will be amazing if it can do well on debut.

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