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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...

Yong Xin International Holdings Ltd


(Yong Xin IPO booth at Raffles Place)

Yong Xin International Holdings Ltd manufactures high precision steel strips and its main products are chrome plated steel strips and cold rolled steel strips. The prospectus is here.
Public offer : 2m shares at 30 cents
Placement offer: 58m shares at 30 cents
Manager: Sterling Coleman
Closing date: 26 July 2007



This is another good quality IPO from Sterling Coleman. It seemed that this boutique IPO firm is on the right track and hitting the market with a series of quality Chinese IPO companies. Unfortunately the number of shares available for the public tranche is really pathetic and the probability of getting it from the ATM is extremely low. The listed peers in Singapore are mainly Link Hi Holdings and Cosmo Steel Holdings. Currently steel products are in high demand in China since China is the factory of the world and this is no exception.

(peer comparison)
Based on a 15x forward PE for 2007 EPS, my fair value for this company is 60 cents. (vested).

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