Jason Parquet Holdings Limited ("Jason Parquet" or "Company") is offering 33.8m placement shares (comprising 18m New Shares and 15.8m Vendor Shares) at $0.225 each for a Catalist listing. There is no public tranche (so you cannot apply through the ATM) and the offer will close on 21 Sep 2012 at 12pm.
The Company is established in 1987 and has become one of a leading providers of timber flooring services in Singapore. The Company is engaged to supply and install a range of timber flooring. The 2 key business drivers are projects and distribution.
The Company works closely with Contractors to deck up condominiums projects.
The revenue fluctuates between $26m and $30m in the last 3 years and the profit after tax was $2.7m in FY2011. The EPS based on fully diluted shares was Singapore 2.5 cents. That translates into a historical PER of 9x.
Out of the 4m raised, 1m will go to professional fees and commission and the balance of 2.9m will be used for general working purposes and fund possible acquisitions.
Post listing the NTA per share will be $0.14 and the market cap is $24.3m. There is no stated dividend policy adopted by Jason Parquet.
In my personal view, the Company will have to move up the value chain or expand out of Singapore, otherwise, the growth is probably going to be limited even though there are many residential projects in Singapore. This is a small cap company in a very niche business.
I can't think of a better time for the Company to get listed (since the sentiments is pretty good right now) and I can't think of a close competitor listed here. If i use Nobel Design as a benchmark, which is trading at 11x 2011 PE, there is probably some upside to 28c but it is a hit and run for me (if there is a public tranche) but since there is no public tranche, you can just watch from the sidelines.
(Interesting picture from the prospectus... where will this company lead you to?)