KTL is a supplier of rigging equipment and related services to customers mainly in the offshore Oil & Gas and marine industries.
Public - 2m shares at $0.28
Placement - 38m shares
Manager: Philip Capital
FY07 (30 June 2007):
Revenue : S$41.8m
Net profit: S$10.3m ($6.1m comes from sale of Leashold property)
EPS: Singapore 2.6 cents
Market cap based on IPO price : S$44.8m
After stripping out the one-time gain from sale of leasehold property, the net profit is $4.17m and based on 160m post-ipo shares, EPS is Singapore 2.6 cents. Assuming FY08 grow by 30%, EPS will be Singapore 3.38 cents. Based on IPO price of 28 cents, it is trading at forward PE of 8x. Assuming a PE range of 8-10x, the fair value is between 27 cents to 34 cents. A small upside from IPO price.
I will give it a miss due to the low number of shares for public tranche as well as the fact that it is within its fair value range.
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