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Saturday, 21 July 2007

MAP Technology Holdings

MAP Technology Holdings Limited manufactures data storage products. The Company manufactures and sells stamping products, die cut components and provides electronics manufacturing services such as assembly, testing, procurement and logistics. The prospectus is here.

Public Offer: 3 million shares at 32 cents
Placement Offer: 73.5 million shares
Manager: DBS

This is another IPO that doesnt excite me since it is in the technology sector although the Company showed very impressive growth for the last 3 years. The entire technology sectors in Singapore suffers from low PE multiples but you can expect a stable business as its parent company Min Aik Technology Co., Ltd is listed in Taiwan and Jurong Technologies (listed in Singapore) is an associated company of Min Aik.

Net profit for 2006 was US$5.8 million and assume it grow by 50%, net profit for 2007 will be US$8.7 million. EPS for 2007 will be around 8.7m (2007 profit) x 1.52 (forex) divide by 305.8 m shares x 100 = 4.3 singapore cents. Based on PE valuation of 8x-10x, the fair value of MAP will range between 34 cents to 43 cents.

I would rate this a Stag under current sentiments with some upside going forward if the Company can continue to show strong growth but i wont be investing this for the long term. It will rate this IPO as another sell on first day company for me. (vested)

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