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Tuesday, 19 February 2008

Samko Timber Limited

Samko Timber launched its IPO of 183 million new shares at 55 cents each to raise $100.65 million. The offer was delayed due to stock market volatility and will close on this thursday, 21 Feb 2008. This was a far cry from the original intention to sell those shares at betwen 63 cents to 81 cents.

Placement - 180 million shares at $0.55
Public - 3m shares at $0.55

The offer closed within 3 business days after it was open for subscription on 18 Feb 2008 at 6pm. This very much shows that the placement offer has been fuly subscribed and that Credit Suisse is just waiting for the right timing to launch the IPO.

Financial results:
8 months YTD to 31 Aug 2007: Revenue US$142.5 milion, net profit: US$ 4.5 million. However, this figure will be changed to sales US$216.5m and net profit of US$11.6m for the 8 months if the acquistion of is accounted.

Frankly it is difficult to do financial projections for the timber company. Its results has been rather erratic in the past. The peer listed in Singapore will be Unifiber.

I am too tired to do a detailed projections but i will give this company a miss for now due to the big float. Let me se if my mind can function better tomorrow since i had a few glasses of wine tonight with my ex-colleagues....z.z.z..z

Monday, 18 February 2008

2Y Capital Fund

Dear subscribers of Singapore IPOs,
I have set up another blog to write about my personal investment fund. You can subscribe for the email updates here. I have intentionally keep it separate so that this blog continue to be dedicated to IPO companies that are listing on the SGX. Hope you will find a little value in both the blogs.

Sunday, 3 February 2008

Yongmao Holdings Limited

(a very small IPO booth at Raffles Place)

3.8 million Public Offer shares at $0.35 each
107.75 million Placement shares at $0.35
Manager, Underwriter and Placement Agent: CIMB
Closing date: 19 Feb 2008

Yongmao Holdings designs and manufacture a wide range of towercranes and towercrane components and accessories. You can have a detailed write up at Kleer's blog, thus i wont waste time to repeat the same information.

Q1 EPS based on enlarged share capital is 1.73 cents and using a simple Q1 EPS x 4, the EPS for FY2008 (ending 31 March 2008) will be 6.92 cents. Based on the IPO price of 35 cents, it attractively priced Yongmao at only 5.06x PE. There will be potential upside as the Company is running at close to full capacity and that the proceeds will be used to double its current capacity and the new manufacturing facility will be completed by end of this year. Another good thing which i like is the diversified customer base from differing geographical regions.

I cant think of any similar companies listed on SGX. Tat Hong, one of a substantial shareholder of Yongmao, is trading at around 12-15x PE. Assuming a fair value of around 9-11x, the fair value should range from 63 cents to 76 censts. I think the IPO price of Yongmao is attractively priced for a strong stag. Try your luck at the ATM!

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