800 Super Holdings Limited ("800" or the "Company") is offering placing out 32.214m shares at $0.22 each. There will be 30.214m new shares and 2m vendor shares. The IPO will end on 13 July at 12pm but there is no public tranche. The Company is basically a waste management company but somehow like to position themselves a leading "environmental solutions provider"...sigh!!!
The 3 key businesses are Waste Management and Recycling, Cleaning and Conservancy and Horticulture. The Company is one of the four licensed public waste collectors and over 20 years of track record in the industry.
The directors intend to recommend and distribute dividends of not less than 20% of its net profits attributable to shareholders for FY2011 and FY2012.
Revenue grew from S$55.4m in FY2008 to $69.6m in FY2010 and net profit after tax grew from $2.2m to $5.2m during the same period. From the prospectus, assuming the service agreement is in place in FY2010 and based on the enlarged share cap of 178.8m, the EPS will be around 2.54 cents and that translate into a listing PER of 8.7x. The market cap post listing is around $40m.
The Company intends to use the proceeds to expand its materials recovery capacity and the existing fleet of rubbish trucks, if i use plain English. I dont have much feel about this IPO, think the company is fairly valued and future prospects will greatly depend on whether they win or lose the waste management contracts in Singapore. I would give this a miss.