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Singapore Institute of Advanced Medicine Holdings Ltd

Singapore Institute of Advanced Medicine Holdings Ltd ("Sam" or the "Company") is offering 114m new shares comprising 4.415m Public Offer Shares and 109.585m Placement Shares at $0.23 each for a listing on Catalist.  The Company aims to raise $26.2m and the majority of the proceeds will be used to repay debt and the balance for working capital. The market cap based on the IPO price is $231.8m and the offer will close on 14 Feb at 12 noon and starts trading on 16 Feb 2024 at 9am.   Principal Business SAM is a healthcare service provider using advanced technology for early and accurate diagnosis to detect and treat cancer, neurodegenerative and cardiovascular diseases.  SAM has strategic collaborations with public and private institutions for research and clinical work.  SAM's goal is to create a comprehensive one-stop ambulatory cancer centre to undertake the challenges to fight cancer and is one of the first to adopt proto beam therapy treatment in Singapore. Fi

AGV Group Limited



AGV Group Limited ("AGV Group" or the "Company") is offering 26.92m shares via placement at $0.22 each, comprising 21.82m new shares and 5.1m vendor shares for a listing on Catalist. The offer will close on 24 August 2016 at 12pm. The market cap based on the IPO price is S$27.7m.

I don't intend to spend too much time on this IPO as all the shares are placed via placement.

The Company is one of the leading providers of hot dip galvanizing services in Singapore to steel and iron fabrication industries with a well diversified client base.

According to the prospectus, the competitive strengths are as follows:
  • market quality services at competitive prices
  • attuned to customers' needs
  • experienced and management team
  • established business relationships and extensive networks
Financial Results


While the revenue is growing steadily, this is still a small cap company with revenue of less than $20m. The first half profit for FY2016 is actually lower than that of FY2015.

Based on the EPS (post-placement share cap) of 1.78 and assuming the service agreement is in place, the IPO is priced at a PER of 16.6x. This is not exactly "value for money" in Singapore context. 

Some of my concerns include:
  • This is a small cap company with revenue less than $20m and in a competitive industry
  • Vendors are cashing out at the IPO
  • There is a long list of pre-ipo investors who invested at around 8.8 cents who may want to exit
  • The listing valuation at 16x historical is not exactly compelling
  • The current IPO sentiments and climate is weak
For the above reasons and given there is no public tranche, i will give it a zero rating.

Happy IPOing

Comments

Anonymous said…
Based on the price of 0.22 and EPS of 1.78, wouldn't the PER be 12x rather than 16x? Sorry newbie question.
Dennis Ng said…
Look like the Fullerton Healthcare IPO has stalled.
http://www.businesstimes.com.sg/companies-markets/fullerton-healthcare-said-to-delay-ipo-after-regulatory-queries
Unknown said…
Will you write on the new ipo HC surgical
Unknown said…
mr ipo why no answer de
Mr. IPO said…
Over weekend la. No public tranche