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IPO Chilli Ratings

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Singapore Institute of Advanced Medicine Holdings Ltd

Singapore Institute of Advanced Medicine Holdings Ltd ("Sam" or the "Company") is offering 114m new shares comprising 4.415m Public Offer Shares and 109.585m Placement Shares at $0.23 each for a listing on Catalist.  The Company aims to raise $26.2m and the majority of the proceeds will be used to repay debt and the balance for working capital. The market cap based on the IPO price is $231.8m and the offer will close on 14 Feb at 12 noon and starts trading on 16 Feb 2024 at 9am.   Principal Business SAM is a healthcare service provider using advanced technology for early and accurate diagnosis to detect and treat cancer, neurodegenerative and cardiovascular diseases.  SAM has strategic collaborations with public and private institutions for research and clinical work.  SAM's goal is to create a comprehensive one-stop ambulatory cancer centre to undertake the challenges to fight cancer and is one of the first to adopt proto beam therapy treatment in Singapore. Fi

Teho International Inc Ltd

Teho International Inc Ltd ("Company") is placing out 16.8m shares comprising 11.8m New Shares and 5m Vendor shares at $0.24 per share for a listing on Catalist. The Company is a supplier of rigging and mooring equipment as well as related services to customers in the marine and offshore O&G industries. The IPO will start trading on June 4, 9am.

Revenue grew from SGD 25.1m in FY 2006 to SGD 25.3m in FY 2008 while profit after tax rose from SGD 1m to SGD 8m in the same period. The revenue for 1H FY 2009 is SGD 18.7m and the net profit after tax is SGD 5.7m. The listing fees cost approximately S$1.6m. Frankly, to raise S$4m fresh money only to "pay" $1.6m in expenses hardly makes any sense just to buy a listing status. The financial year is from 1 July to 30 June.

The EPS for FY 2008, assuming the service agreement was in place, will be 7.5 cents based on pre-placement capital of 100m shares and 6.7 cents based on post IPO 111.8m shares. At the price of $0.24, the company is listing at a historical PER of 3.58x, which is reasonable for investors under current market conditions. After listing, the Company will have a market cap of S$26.8m. (Ultra small cap). After the listing, the Company will only have 15% public shareholders while the Lim siblings will own approximately 85% of the Company. Investors who are wary of being a minority shareholder should avoid this company and trading liquidity is likely to be an issue as well.

The oil and gas industry outlook will likely remain positive for the coming years and net margins looked pretty decent for this company. The Company intend to distribute 20% of its profit as dividends for FY 2009 and FY2010. Assuming net profit after tax is S$11.4m for FY 2009, the dividend per share will be 20% x 11.4m divide by 111.8m shares = 2.04 cents. Based on the IPO price of 24 cents, the dividend yield would be a respectable 8.5%. As of 31 Dec 2008, the NTA was 17.1 cents.

My personal view is that the IPO is attractively priced with a promise of good yield if the Company is able to deliver profits for the next 2 years. However, the downside will be the small public float and lack of institutional investors (for corporate governance, which may or may not be an issue). Other than that, the same old set of "issues" for small cap companies exist such as lack of analyst coverage and outside most fund manager's mandate due to the small cap and small public float.

It is however, good to see a listing again after a long break (even though it is a Catalist listing). My view is that many companies will attempt for an IPO listing again should the IPO window be opened by Teho....

Comments

Anonymous said…
Hi,
thanks for the info..
do you know how can we apply from it.... as in the procedure? i dont know how to..

thanks
Anonymous said…
Hi,
thanks for the info..
do you know how can we apply for it.... as in the procedure? i dont know how to..

thanks
Mr. IPO said…
Unfortunately, i think for this issue, it is via placement. I dont think there is a placement tranche. In a normal IPO, you can apply thru the ATM or via cashier's oder.
Mr. IPO said…
typo - i mean "i dont think there is a public tranche".