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Singapore IPOs: Why I No Longer Cover Every Listing

Some readers may have noticed that I have not been writing about every Singapore IPO since last year. The simple reason is that life has become busier. Between my day job, an increasingly packed travel schedule, family commitments and desire to play more golf, I have become much more selective about how I spend my time.  Writing detailed IPO reviews takes time — reading prospectuses, analysing financials, comparing valuations and understanding the competitive landscape. While I still enjoy investing and writing, I no longer feel the need to cover every IPO that comes to market. Instead, going forward, I will probably focus only on IPOs where I am seriously considering investing my own money or where there is something particularly interesting that is worth discussing. I suspect this will make the blog more useful as well. Rather than writing about every deal, I can spend more time sharing my thoughts on the handful that I believe deserve attention. That bring...
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Kori Holdings Limited

For Records only



Kori Holdings Limited ("Kori" or "the Company") is placing out 28.2m shares of which 25.6m are New Shares and the balance of 2.6m are vendor shares at $0.25 each. The Company is basically a sub-contractor for construction projects.

Financial Highlights

Kori generated a revenue of S$34.7m in FY 2011 and made a net profit of $6m. For the first half of FY2012, the revenue was $26.6m and the net profit was $5.1m. At the date of issuing the prospectus, it has an order book of approximately $82.8m. 

The offer has ended on 7 Dec 2012 and there will be no public tranche.

The offer price of 25c is at a discount to its NAV of around 31.93 cents and at very low single digit PE. The market cap at IPO price is around S$24.8m

The company will be majority controlled by Messrs Kori Nobuaki and Hooi Yu Koh (61.7%). A group pre-IPO investors came in at around 12.5 to 15 cents.

Fair Value

I will not attempt to derive a fair value but i believe the downside is limited with potential upside as it is being listed below its NAV and at a very low PE multiple. In fact, maybe the owners have been "short-changed" by the financial adviser but personally will not buy this at the open market due to its industry and small cap status.
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Comments

Dividends Wizard said…
Avoid , don't waste your $2 ...
9 December 2012 at 19:35
Bond trading said…
A nice article with a great stuff of information, I really like that. This is really interesting site that gives huge of information to all readers thanks a lot.
11 December 2012 at 00:41
Asia Pacific Bullion said…
good company information.
11 December 2012 at 14:52
Anonymous said…
Hey, can I know if it is possible for non-Singaporean to apply for IPOs in Singapore ?
11 December 2012 at 19:11
Anonymous said…
Hi I believe I shared with you Duty Free International in one of the comments in my old post as returning the favour for great write-up on IPO.

The share has been on a massive up from 28c (i bought 100 lots), till now 35.5c with yesterday day high of 36.5.

The Company has over the past few days did share buyback and today they had two good annoucements:

(1) Land Deal going through (370 million), likely cash cow --> Special dividend or more sharebuyback or delist

(2) 200,000 share bbuyback at 0.35

The majority owner is Atlan (Malaysia) and the fella name is Vincent Tan. Next year he is listing the biggest IPO in Singapore TOTO, not sure if you heard of it.

Go look it up, I think potential top stock, hope to huat ah with all bros. just sharing, pleas do you homwork. my target is 42c-45c though insider tells me 60c.
18 December 2012 at 19:58
Mr. IPO said…
Haha yes you have! I was just thinking about you when I saw Duty Free run up. Congrats but too bad I didn't buy. :(
18 December 2012 at 20:41
Anonymous said…
still think can buy dutyfree, if you know the story. estimate is 50c-60c but i would sqay 42-45cents i would sell. just to let you know company did share buyback last 8 trading days totalling 2.5million shares at share price 0.38 average. today closing 0.38 i think 0.38 and 0.385 before next year can buy, once next yr: with Feb Results out, latest March 18: land deal go through with likely special dividend... should rise by then. I would load now but no more cash. all pumped into dutyfree total shareholding 255 lots av price 0.32
28 December 2012 at 22:58
Anonymous said…

Hello everyone.

Some thoughts. This singapore-ipos.blogspot.com seems to be about IPOs, but quite a few comments are all about flipping of IPO shares.

I wonder if anyone has considered the (negative?) effects of all this stagging and flipping.

Firstly, this flipping may lead vendors to up their price.

Secondly, this flipping is to the detriment to those who only want a few cheap shares, every now and then.

Thirdly, if vendors perceive the public is not interested in their shares, and are only interested in flipping their shares, they may reduce the public tranche.

I'm generally happy with the few IPO shares I have obtained at public offerings, I don't really worry about their share price, and I collect the dividends.


So, while discussing companies is very good, I hope people bear in mind all the problems they are unwittingly causing by flipping their share allocations around like demented chickens.

Just my two cents worth. Thank you.





1 January 2013 at 20:49
Anonymous said…
Duty Free International can buy. Atlan doing a share placement, Vincent Tan may launch a takeover ...
15 July 2014 at 09:01
Mr. IPO said…
Mr. Duty free is back? :) you bought liao? What is your time horizon...
15 July 2014 at 22:48
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