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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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Sino Construction Limited



Sino Construction Limited was established in 1998 and is principally engaged in building construction and civil engineering activities in Daqing City, the PRC. The Company is offering 152.698m shares where 6.398m shares are offer for public and 146.3m shares are for placement at 39 cents each.

I never like the construction sector. If this sector is already considered "dirty" in Singapore with all the under-table bribery and gifts, how "clean" can it be in China. In addition, this Company is registered as a Class II, that is, it can tender for projects up to RMB 500m (or S$100m) and personally i think that is on the 'low' side. In addition, it is only a smallish construction in a small city of Daqing in the province of Heilongjiang. The net profit for FY2007 is RMB168.5 million. The EPS post IPO is RMB 28.25 cents or Singapore 5.65 cents. The NTA is only 12.2 Singapore cents. Pre-IPO investors came in at 23.4 cents (versus the IPO price of 39 cents) and most of them are selling out half of their shareholdings at the IPO.

Assuming EPS grow by 10% in FY2008, it will be 6.2 cents. At IPO price of 39 cents, it is priced at forward PE of 6.3x. I think the issue is fairly priced under such weak IPO sentiments and there will not be any upside. I cant recall any construction firms that are listed on SGX but would consider this Company as fully valued and in a sector that i personally dont like. I will avoid applying for this IPO.
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