Sysma Holdings Limited ("Sysma" or "Company") is engaged in providing building construction services to the private sector in Singapore. The Company believes it is one of the leader in high-end landed property construction business.
Sysma is offering 18m shares at $0.28 each
via Placement for a Catalist listing. There is no public tranche. The offer will end on 1 August 5pm and starts trading on 3 Aug.
Revenue for the Company hovers between $43m and $54m for FY2009 to FY2011 and net profit after tax is between $3.6m to $5.3m during the same period. The Company intends to distribute at least 30% of its net profit for FY2012 and FY2013 as dividends. As of 30 April 2012, the order book stands at $59.5m
The Company is listing at a historical PER of 5.51 (based on enlarged share cap and assuming service agreement is in place). The market cap is $26.6m
I have no further comments on this company. It is a small cap company and in a very niche market in land scarce Singapore. While the valuation is cheap, i am not sure if the business is scalable. I would have given it a one chilli rating - apply only if you like it but since there is no public tranche, the ratings would not have made any difference.