Monday, 4 November 2013

Figtree Holdings Limited



Figtree Holdings Limited ("Figtree" or the "Company") is offering 54.546m placement shares at $0.22 each. This is a pure placement tranche with no public shares and the shares will be listed on Catalist. The IPO will end on Nov 7, 12pm.

Principal Business

The Company is basically a main contractor specializing in the design and building of commercial and industrial facilities. 

Financial Performance


It is interesting to know that this Company basically grew from zero revenue to $60m in 3 short years and the adjusted EPS as of FY2012 is Singapore 1.37 cents. Assuming the profit increased by 50% in FY2013, the adjusted EPS will be Singapore 3.06 cents (I am just guessing).

Shareholders

Do note that Freight Links (a listed company on the mainboard) has a 20% stake in this Company post IPO and it increased its stake by buying an additional 13.1m shares at $0.20 each from Danny Siaw in October 2013, probably in order to maintain its shareholding at 20% to make it an associated company. The 20c will probably served as a "independent valuation" of the firm.

Valuation

Based on the IPO price of 22 cents, assuming the service agreement is in place and using the enlarged share cap, the historical PE is around 15.2x. Using the adjusted EPS of 3.06, the forward PE is about 7.2x.

Mr IPO's rating

Given that there is no public tranche and i am not privy to its forecasted earnings plus the short operating track record, i will give it a one chilli rating.

My gut feel is that given the small float and low priced IPO, the downside is probably limited for a start but whether the share price will go up post IPO will depend greatly on who they place out the shares to and its subsequent financial results.  

11 comments:

Anonymous said...

Danny , if you knew him is a rags to richest story ..one that constantly remind me of hard work, honesty, smart and with a little luck goes a long way.

way to go brother ! we are all very proud of you!

nottirong said...

Got write up for pacific radience?

Australia Business News Online said...

With dedication and passion to business, you will surely hit success. Kudos to you, mister.

Mr. IPO said...

Haven't launched yet. Will do that if launched

D said...

Pacific radiance launched yesterday for public =)

Anonymous said...

Pacific Radiance application closing on Monday 12pm

Anonymous said...

Mr ipo,

On Pacific Radiance, the duo helmed Jaya. Is this track record a positive or negative factor?

Jaya was run to the ground and went under JM to restructure and had to sell assets to cover its debt. It was then taken by a team of new management.

Only until few years later, it was later it was able to give out dividend and etc.

Would the same thing later happen to Pacific R???

Mr. IPO said...

It's the private equity firm that bought over from jaya founders that ran it aground. Haha

Anonymous said...

Mr ipo,

Thank you for pointing out my mistake. I must apologise to the two gentlemen.

Anonymous said...

Hi Mr IPO, so you won't be doing the analysis for Pacific Radiance?

Mr. IPO said...

Just spent 2 hrs doing that. Now back ache haha

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