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IPO Chilli Ratings

IPO Chilli Ratings
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Food Innovators Holding Limited

Food Innovators Holdings Limited ("FIH" or the "Company") is offering 14m shares at $0.22 each, for which 13m shares will be through placement and the remaining 1m shares via a Public Offer. The IPO will close on 14 Nov at 12 noon and starts trading on 16 Oct 9am.  FIH has two business models - the first is to be a master lease and sublease the space to other tenants and the second is to operate and manage restaurants.  The Company currently has 12 restaurants in Japan, 10 in Singapore and 4 in Malaysia. The market cap based on the IPO price is around $24.9m. Financial Highlights FIH's revenue grew from $37.8m in FY2022 to $43.8m in FY2024. It is quite funny to see that being a master land lease holder has a higher margin than operating the restaurants, once again illustrating the point that it is better to be a landlord to shake leg and collect rent. According to the prospectus, the PER is around 19x. The Company intends to pay 20% of its net profit after tax a
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Avi-Tech Electronics Limited



Avi-Tech Electronics Limited provides services and products to the semi-conductor industry. The Company designs burn-in boards and related products. Avi-Tech also offers engineering services and equipment distribution. The prospectus is here.


Public offer : 3m shares at 33 cents
Placement offer: 85m shares
Manager: Westcomb


This IPO is not one that 'excites' me a lot. One reason is that it is in the not-so-hot electronics sector and in the semi-conductor industry. If technology sector in Singapore is so 'hot', then you will not see M&A deals like acquisition of UTAC or Broadway or MMI, etc. Having said that, the Company seemed to be experiencing very strong growth with 1H07 sales growing by 117% over 1H06 and 1H07 profit is 67% over 1H06.

Assuming the net profit for 2007 is 1H07 x 2 = $15.2m, the EPS is 4.3 cents. At IPO price of 33 cents, it is priced at forward PE of 7.7x. Using a 8-10x forward PE, the fair value is approximately between 35-43 cents. I certainly hope this will not be the first IPO to go below water or everyone will lose confidence in Westcomb. It is a small stag for me and you will not be faulted for giving it a miss and save that $2 for a chicken rice since it is difficult to get from the public offer anyway.

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