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IPO Chilli Ratings

IPO Chilli Ratings
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Singapore Institute of Advanced Medicine Holdings Ltd

Singapore Institute of Advanced Medicine Holdings Ltd ("Sam" or the "Company") is offering 114m new shares comprising 4.415m Public Offer Shares and 109.585m Placement Shares at $0.23 each for a listing on Catalist.  The Company aims to raise $26.2m and the majority of the proceeds will be used to repay debt and the balance for working capital. The market cap based on the IPO price is $231.8m and the offer will close on 14 Feb at 12 noon and starts trading on 16 Feb 2024 at 9am.   Principal Business SAM is a healthcare service provider using advanced technology for early and accurate diagnosis to detect and treat cancer, neurodegenerative and cardiovascular diseases.  SAM has strategic collaborations with public and private institutions for research and clinical work.  SAM's goal is to create a comprehensive one-stop ambulatory cancer centre to undertake the challenges to fight cancer and is one of the first to adopt proto beam therapy treatment in Singapore. Fi

Sincap Group Limited

This is for information only. No public tranche was offered.

Sincap Group Limited ("Sincap" or "Company") is in the trading of alumina and thermal coal, as well as in the mining and sale of gypsum in China.

The Company is selling 32.5m placement shares at $0.20 each of which 25.5m are new shares and 7m are vendor shares. The listing will be on the Catalist. The offer closed on 23 July and will be listed on 25 July 2012.

Based on the enlarged share capital and IPO price and assuming the service agreement was in place, the company will be listing at a historical PER of 58x. wow... and the market cap will be $35.1m. Since i am not privy to the 2012 projections, i will not attempt to determine its fair value. The company will be tightly controlled with a free float of 18.5%.

The directors intend to propose a dividend of at least 50% of its net profit for FY2012. Assuming the profit level remained the same, the profit in SGD will be around $810,000. Since they have raised SGD5.1m from the public, they should have the means to pay out $810k of which 81.5% will go to the founders of the company. Investors better hope the profit for 2012 remain low?!!?

I don't really fancy the IPO for the following biased reasons:

1. Small cap China-based mining firm.
2. Audited by non big 4 audit firm.
3. Expensive valuation.

My rating: Chopped Chilli.


Comments

In this vendor agreement agreement must mention the details about the service being provided by the vendor.