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Tuesday, 1 January 2019

Singapore IPOs Tikams for 2018

2018 is a year to be forgotten for IPOs on the Singapore Exchange. SGX "failed" to attract any significant listings and most of the listings are currently underwater as shown by the table below.

(Source: Shareinvestor.com)

Mr. IPO has been reporting his IPO tikams (performances) since 2012. You can search for the prior posts here.  How did he perform in 2018?

Contrary to even my own expectations, 2018 turned out to be the best year i ever had because of a few significant "bets".

Majority of the gains came in the first half of 2018 and significantly from the RTO of Memories Group, which i took a significant placement shares , so technically it is not an IPO but I have classified it in the IPO category. The top 3 gains are as follows:
  1. Memories Group $ 19,471
  2. Asian Healthcare $  8,371
  3. SLB Development $ 3,366
While i have fared well in the IPO tikams, my personal portfolio suffered a big loss when i wrote down Hyflux Perps to 10% of its par value. At this juncture, I am not even sure if i can recover the written down value and i will blog about them in a separate post on  my passive income pursuit.

I think 2019 will continue to be challenging for the Singapore IPO market with SGX struggling to attract companies to list here. The market should continue to stay volatile in the first half and beyond that, it will be challenging to predict how the markets will perform. 

That is all from me for now. I take the opportunity to wish all readers good health, happiness and a wonderful 2018!  

Tuesday, 25 December 2018

Biolidics Limited


This is purely for information only as the Company is already listed. I will not do much analysis on it. Apologies for missing this as i was busy traveling this month.

Biolidics Limited ("Biolidics" or the "Company") placed out 27.5m shares at $0.28 each for a listing on Catalist and a market cap of $67.9m. The Company was listed on 19 Dec (and closed at $0.235, down 16%).

Principal Business

The Company is a medical technology company focused on the development of cell enrichment systems, which when combined with other analytical tests, have a wide range of applications for cancer diagnosis, prognosis, treatment selection and monitoring.

Biolidics has developed a fully automated IVD medical device which relies on a novel patented technology to separate and enrich cancer cells from blood as illustrated below. 


Business Model

The business model of the Company comprised of sale of the ClearCell FX1 System, the accompanying biochip and other consumables to academic and research institutions, hospitals and laboratories, which use their medical devices.

Financials

As you can tell from the table above, the Company is loss making and incurred a loss of $4.23m for FY2017 (pro forma). Given that Biolidics is a pre-revenue stage, it will be likely continue incurring losses in the next few years and there is a high chance that the Company will need to raise money again in future, thereby causing dilution to existing investors.

In addition, the Company's NAV is around 4.07c and the share price is issued at a huge premium to its NAV of 4.07 cents (pro forma). If the Company continue to burn cash, it will need to raise money again shortly and investors will be further diluted if they do not participate in future fund raise.

Prospects

Frankly, i know nuts about medical technology but here is what the prospectus has to say about its own prospects.


Conclusion

I didn't spend much time thinking about what i like about the Company and the concerns which i may have. My own view (even without the benefit of hindsight) would be that local investors are not able to appreciate biotech companies and with the poor sentiments currently, it will be challenging for unprofitable companies to sustain its share price post listing. Perhaps it is a blessing in disguise that there are no public tranche!

I have taken the Christmas break to catch up on my IPO and blog posts. Here's wishing all readers a Merry Christmas!

Cheers, πŸŒ²πŸŽΆπŸŽ‰
Mr. IPO

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