Gaylin Holdings Limited (Preview)

Just after i complained about a Singapore IPO Famine on Tuesday, someone asked me today if I want to subscribe for the placement shares of the upcoming company - Gaylin Holdings Limited. The draft prospectus is here. Finally i see some decent local company going for IPO!

Hence the reason for the preview this time (usually i not so free :-P).

Anyway, the indicative issue statistics as follows:

Existing no. of shares = 300m.
New shares to be issued pursuant to the IPO = 110m
No vendor share sale

IPO price = S$0.35 - S$0.37
Total IPO raising = S$38.5m - S$40.7m
Market cap @IPO = S$143m - S$151m
Target IPO launch date is mid Oct.

My "gut" feeling of the IPO as follows:

1. Current market sentiment is positive and that should spill over to the IPO.
2. Company is in the Oil and Gas sector which is one of the 'hottest' right now in the region looking at how Ezion and Ezra are winning contracts. They have been around for a long time and is one of the Enterprise 50 winner in 2009. 
3. My back of the envelope computation show that the listing historical PER is around 11x, which may present a small upside to around 13-15x if based on historical PER. I am not privy to the future growth but understand that it may get exciting. 
4. The company is giving out 30% of its net profit for FY2013 and FY2014, which again based on back of envelope calculation show a yield of around 3-4% assuming profit level remain the same. This should provide some 'down-side' protection given that you can participate in both yield and growth. 
5. Vendors are not selling!

So here you go. Facts presented above. You decide for yourself if you want to call your CIMB broker (or their sub placement agents). Their 'track record' in recent times have been pretty mix depending on how you measure it.

Leave a comment here or in my facebook to tell me if i should indicate my interest or what you will do if you are in my shoes (assuming allocation is not an issue and i will be allotted what i indicate).

1. Hoot 500 lots

2. Buy 100 lots

3. Tikam 10 lots.

4. Don't bother.Your friend bluff you one.

The video on the Company below. Video is the way to go?

Singapore IPO Famine?

If i need to make a living out of blogging on companies listing in Singapore, i think i will probably go very hungry...and we are currently experiencing a famine here! 

It is amazing why companies are not rushing out to launch their IPOs since this is such a golden window. Probably they can get their companies out at higher valuations and the share price can be sustained post listing. If you look at the pipeline, there is absolutely "nothing in sight" except for a Indian business trust called Global Telecommunications Infrastructure Trust. 

Pipeline

For readers who want to know how to find out where the pipeline is, you can visit the MAS Opera website.

While Singapore is currently experiencing a famine, our nearby neighbor is having the whale of its time. You can access the Malaysia's IPO exposure here (which is somewhat like our MAS Opera). 

The upcoming Astro IPO comes right after two mega IPOs this year, IHH Berhad and Felda Global Ventures.

These IPOs were only outdone by Facebook and Japan Airlines! Amazing year for Malaysia. Perhaps Mr. IPO should consider expanding out of Singapore and start a new blog for companies listing in South East Asia, then HK & Asia, then Europe then USA. (stop dreaming please...)

How does my proposal sound? Any interested investors? My blog will file for IPO when it expands all the way to USA. :-P

Happy IPOing.

Win a trip for 4 to Taiwan! --- "Sponsored Video"

I am not sure if you remember my posting on F&N many weeks back. Well, it ended with an anti-climax when an "agreement" was reached between the Thai tycoon and the Dutch Brewer, Heineken.

Interestingly (i am not sure if it should be coincidentally), i received an email asking if i am interested to post this Heineken video on my blog! :)

The video will show the journey of one man with no money but Heineken beer and whether he can travel from Inner Mongolia to Bangkok just by using Heineken. (Hmmm... why did he stop at Bangkok and not Singapore... is it because Chang Beer is in Bangkok and Heineken wants to show Mr. Chang who the boss is? hahaha).

Anyway, enjoy the video, watch the episodes and join his journey here to win a trip for 4 to Sensation Taiwan and you don't have to do it with beer only...... :-P

Correlation between IPO Booths and its performance?

IPO Booths

It will be interesting to do a correlation between the size of the IPO booths and the performance of the company after its IPO. Any takers?

I am sad to say that many IPOs were not as good as how their IPO booths looked. In fact, some of the companies have even gone bankrupt despite having one of the nicest looking IPO booths at the launch. Perhaps the glitzy booths are just a camouflage for its lack of quality.

I scan through my blog and see many S-Chips booths. I can imagine how much Singaporean investors lost from the many S-chips that were listed here in Singapore. An interesting article to read again will be confession of a S-Chip CEO in case you are a newbie to IPOs. I hope this will help you understand a bit better on why I am very wary with S-Chips. Unfortunately, these scandals have resulted in well managed S-Chips being unfairly penalized with low valuations and many have since been privatized and re-listed elsewhere.

In my personal view, there are only a few S-Chips which i will consider for trading (not invest), example Yanlord and Yangzijiang. Some of you may like China Minzhong, Sino Grandness and China Fishery but i will reserve my judgment for now.

Happy S-Chiping.

Jason Parquet Holdings Limited

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?)

Be my friend today!

It was an interesting weekend. Time flies, August just came to an end and our neighbor celebrated its National Day as well. 

I was quite "sad" to see the growth of my friends slowing down after its launch in July. I was cracking my head to stop this "correction" from going on. hahaha (I think i am getting crazy :P) and have set for myself a target to get 1,000 friends by end of 31 Dec 2012. Do you think it is achievable? Let's have a monthly or bi-weekly progress update for the next 3 months and i will share with you the progress to see how far we are from the 1,000 friends goal. :) 

Interestingly, the spike went up again when Mr. IPO appeared and spoke about a free e-book! hmmm... not sure if that means that the most effective method is still to offer "freebies" as what most websites mentioned?

The majority of my friends continue to be male (77.4%) and belong to the 25-44 age group (70.5%) and most of them comes from or resides in Singapore. Does it mean that male Singaporeans are more interested in personal finance or does it mean that older generation are not on facebook or less "friendly" hahaha ?  

Let's go through the objectives for setting up a facebook fan page and share what are the 'benefits' of being a friend of Singapore IPOs.

Objectives: To build an online community who is interested in IPOs (that was how i started) and personal finance (investing, trading, real estate, financial freedom, retirement). 

Benefits of becoming a fan: 

• You can have an interactive session with Mr. IPO. You can ask questions and leave your comments, etc. I may not have the answers but collectively, one of us may have.
• You will be notified (via facebook) of upcoming IPOs or its closing time for application (so that you won't miss it if you are interested).
• This is the key marketing one hahaha --> You will have access to advanced notifications, exclusive content and research reports. 

What do i mean by exclusive content? Well i recently posted in my Starfish SRS blog about a stock that i was buying. Frankly, if you don't have a facebook account, it is okay because this is a long term investment and you will know of it anyway when i purchase it. However, the benefit of being a friend is that you will know it before i purchase or which company i was talking about. After all, this is what friends share with each other.

Disadvantages of becoming a fan:

Well, like all things, there are 2 sides to a coin. The downside is you may receive notifications from facebook for my postings but the good thing is it is now easier to "don't friend' me when you regret later. Hahaha just click on the like button again to 'unfriend' me. 

The picture below shows you how to become a friend and receive exclusive content.

Be my friend today :-) 

Don't worry if you don't have a facebook account or don't want to "like" me lah... you will still receive the usual IPO write-ups from this blog and the chilli ratings! Your patronage either through email or website is very much appreciated. I just want to learn for myself how to run a facebook fan page effectively and know my readers better. :-)

Yours truly,

Mr. IPO