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IPO Chilli Ratings

IPO Chilli Ratings
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UI Boustead REIT — Singapore's Biggest REIT IPO in Years. Is It Worth Applying For?

UI Boustead REIT ("UIB REIT") launched its IPO at $0.88 per unit and the IPO is open for public subscription from now till  10 March 2026 noon , with trading commencing on 12 March 2026 . This is one of the largest REIT IPOs we have seen in some time. As always, I will walk through the background of the REIT, share what I find compelling, flag the areas of concern, benchmark it against listed peers, and close with the chilli rating. The post is generated with the aid of AI but vetted by Mr. IPO About UI Boustead REIT UI Boustead REIT is a Singapore-focused industrial and business park REIT backed by the sponsor entity UIB Holdings — a joint venture between Macquarie Asset Management (managing over US$588 billion in assets globally) and Boustead Singapore , a long-established SGX-listed engineering and real estate group. The pairing brings Macquarie's institutional capital markets expertise together with Boustead's deep operational knowledge of Singapore...
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Hai Leck Holdings Limited



Hai Leck Holdings Limited ("Hai Leck") is offering 85m new shares at $0.26 each of which 4.5m shares will be via public offer and the rest via placement. The IPO will close on 26 Aug 2008 at 12pm. Hai Leck is an integrated service provider of scaffolding, corrosion prevention and insulation works mainly for the oil & gas and petrochemcial industries.

Revenue for FY2007 is S$62.7m and net profit is S$7.7m. 1H2008 revenue is S$33.6m (increase of 17% over 1H2007) and 1H2008 net profit is S$5.9m (increase of 127% over 1H2007).

Hai Leck is one of the rare companies which i credit for showing the EPS based on the post-ipo no. of shares. Many prospectus avoided showing this EPS to paint a more attractive picture for investors. The EPS post IPO for FY2007 is 2.4 Singapore cents and 1.8 cents for 1H2008. The market cap based on IPO price of 26 cents and 325m shares is S$84.5 million. Assuming the company net profit for 2008 is twice of 1H2008 results, its EPS will be 3.6 Singapore cents. Based on the IPO price of 26 cents, Hai Leck is priced at 7.2x forward PE.

Based on its prospectus, its listed customers include Rotary and Hiap Seng and its listed competitors include See Hup Seng and CWT Limited. Based on the post-ipo market cap, its size is closer to Hiap Seng and See Hup Seng. In any case, its listed peers are trading at between 6x to 10x PE. In this regard, Hai Leck is fairly valued at its IPO price and its fair value will range between 22 cents and 36 cents.

The strong outlook for the oil and gas sector in Singapore will most likely ensure its profitability for the next 1-3 years but as IPO is fairly priced, there is really not much upside in the near term and thus the 1 chilli rating.
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