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IPO Chilli Ratings

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The Assembly Place - Balloting Results

This is probably one of the most usual press releases that went alongside the SGX announcement of the balloting results. The Company released a full presentation deck , which is actually quite informative, with information of upcoming pipeline etc (probably the Company felt that it is safer to release this after the IPO closes and not before). The balloting table is as follows: The IPO has drawn strong interest from prominent institutional funds such as Avanda Investment Management (as investment manager for and on behalf of its fund(s)) and Lion Global Investors Limited (as investment manager for and on behalf of its clients), along with prominent investors, including Mr Han Seng Juan, Mr Rudolf Jurgen August Rolles and Mr Chong Soon Kong @ Chi Suim2 , underscoring strong confidence in TAP's investment proposition. Separate from the Invitation, cornerstone investors, namely Apricot Capital Pte. Ltd., Asdew Acquisitions Pte. Ltd., Cache Capital Pte. Ltd., ICH Synergrowth Fun...
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First Resources Limited

First Resource is one of the largest private sector of crude palm oil in Indonesia. There are 3 listed peers in Singapore, Golden Agri, Wilmar and Indo-Agri.

Total Offering: Placement 222 million shares and Public 3 million shares at $1.10 per share.
Manager and Underwriter: Citi
Sub-underwriter : UOB Kay Hian

FY 2006:
Revenue : US$ 94.7m
Net profit : US$ 38.8m

FY 2007:
Revenue : US$ 168m (Assume 1H07 x 2)
Net profit : US$ 75m (Assume 1H07 x 2)
EPS (post-IPO) : US 3.2 cents or Singapore 4.64 cents.

Based on IPO price of $1.10, it is priced at a FY07 PE multiple of 23.7x

Peers Valuation:

Golden Agri - Trading at FY06 Historical PE of 13x (use historical as Q307 a bit erratic)
Indo-Agri - Trading at FY07 Est PE of 23.5x
Wilmar - Trading at FY07 Est PE of 24.6x

First Resources is fairly valued based on FY07 projections and the IPO price of $1.10. Any upside is likely to come from the FY08 projections as well as the high interest from Bio-Diesel projects due to the high oil prices.

Heard that the grey is currently up +10c to +15c from the IPO price. If this counter was listed a 2 months back, it would have enjoyed a very decent debut. My view is that this counter will likely debut with a stag of 10% to 20% upside from IPO price. I would give it a 2 Chilli ratings for long term prospects and profitability and the good peer valuation and share price movement will likely lend further support to this counter.
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