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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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Roxy-Pacific Holdings Limited


(IPO booth in Raffles Place. Photo compliments from Fergus)

Roxy Pacific is basically a niche property developer and the owner of Mercure Roxy Hotel. In FY 2006, its revenue is $48.8m and net profit is $5.2m. The IPO details are:

7m shares for Public at $0.30 each.
126m private placement shares at $0.30 each.
Issue Manager: Hong Leong Finance
Closing date: 10 March 2008 12pm.

Revalued NAV per share as of Dec 31, 2006 = 45.39 cents. This is higher than the IPO price of 30 cents. I do have to caution that "Valuation" is a rather subjective matter as it depends greatly on many different factors. In this regard, the revalued NAV may not represent the actual value in a real transaction. Based on the IPO price of 30 cents and post-invitation shares of 636,560,000 the market cap is around S$190.97 million.

The 1H 2007 revenue is $42.4m and net profit is S$7.7m. Frankly it is not easy to do a forecast for a property developer cum hotel operator because the revenue of a property developer depends greatly on the projects on hand and the revenue recognition policy while the revenue from a hotel is fairly stable and depends on the occupancy and room rates. Assuming i do the lazy way of doubling the 1H profits for FY2007, the revenue for 2007 will be around $85m and the net profit will be $15.4 million. EPS will be 2.4 cents. Based on the IPO price of 30 cents, the 07PE is around 12.5x.

Listed competitors on SGX includes Fragrance and Fragrance is trading at a better valuation of 13x 2007 PE as well as a premium to its NAV. If we use Fragrance as a key comparison, it seemed that Roxy is undervalued and there will be further upside if it can trade towards its revised NAV of 46 cents.

Personally i dont really fancy the Singapore property market and will avoid the IPO market for now given the extremely volatile market conditions for both the stock and property markets.
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