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Singapore IPOs: Why I No Longer Cover Every Listing

Some readers may have noticed that I have not been writing about every Singapore IPO since last year. The simple reason is that life has become busier. Between my day job, an increasingly packed travel schedule, family commitments and desire to play more golf, I have become much more selective about how I spend my time.  Writing detailed IPO reviews takes time — reading prospectuses, analysing financials, comparing valuations and understanding the competitive landscape. While I still enjoy investing and writing, I no longer feel the need to cover every IPO that comes to market. Instead, going forward, I will probably focus only on IPOs where I am seriously considering investing my own money or where there is something particularly interesting that is worth discussing. I suspect this will make the blog more useful as well. Rather than writing about every deal, I can spend more time sharing my thoughts on the handful that I believe deserve attention. That bring...

China Sports International Limited


IPO booth at Raffles Place
China Sports International Limited designs, manufactures, and sells branded sports fashion, footwear and apparel products. The prospectus is here.

Public offer: 3 million shares at 80 cents
Placement offer: 97 million shares at 80 cents.
Manager: Sterling Coleman

This is the blockbuster IPO for July as it is in the very hot sector of "Consumers China" and the stellar performance of China Hong Xing post IPO is another key reason why this Company will do well. Its closest peer listed on SGX, China Hongxing is trading at a phenomenal historical '06 PER of 49x and a forward '07 PER of 34x. While a not-so-related peer, Hong Guo is also trading at 25x '06 PER and 20x '07 PER. I have excluded Li Ning that is listed in Hong Kong as it is trading in the PEs in excess of 50s.



Based on listed peers valuation, my fair value for China Sports is at least $1.70

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