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Food Innovators Holding Limited

Food Innovators Holdings Limited ("FIH" or the "Company") is offering 14m shares at $0.22 each, for which 13m shares will be through placement and the remaining 1m shares via a Public Offer. The IPO will close on 14 Nov at 12 noon and starts trading on 16 Oct 9am.  FIH has two business models - the first is to be a master lease and sublease the space to other tenants and the second is to operate and manage restaurants.  The Company currently has 12 restaurants in Japan, 10 in Singapore and 4 in Malaysia. The market cap based on the IPO price is around $24.9m. Financial Highlights FIH's revenue grew from $37.8m in FY2022 to $43.8m in FY2024. It is quite funny to see that being a master land lease holder has a higher margin than operating the restaurants, once again illustrating the point that it is better to be a landlord to shake leg and collect rent. According to the prospectus, the PER is around 19x. The Company intends to pay 20% of its net profit after tax a
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TTJ Holdings Limited

TTJ Holdings Limited is offering 15m shares for public and 95m placements shares at $0.20 each.  The company is one of Singapore's largest independent structural steel fabricators and also operate 2 dormitories in Singapore.

The financial year ends on the 31st July. From FY2007 to FY2009, the revenue grew from S$64.6m to $138.1m.  Net profit fluctuates from $9.2m in FY2007 to $13.2m in FY2009. The directors intend to distribute 20% of its profit after tax as dividends for the FY ending 31 July 2010.

The application of the IPO will close at 12pm on 30 March 2010 and will commence trading on April Fool's Day, 1 Apr 2010. The market cap is $70m based on the IPO price and is listing at historical PER of 5.25x based on the enlarged share cap.

The main use of the proceeds will be $10m for expansion into the business of strutting business and $4m for the construction of a new fabrication facility in Middle East.  (My view:  Amazing why the company is still going to Middle East where the construction boom has likely ended with many companies mired in debts). 

The company also had a generous "profit sharing" scheme whereby the executive officers and the CFO will share 6% of the PBT and the CEO has a separate profit sharing scheme of at least 2% PBT. With no minimal profits to be attained before the scheme kicks in and with a friendly board of directors, my personal view is that the scheme is quite generous and unlikely to be challenged going forward but hopefully it will bring the company to greater heights. Just for illustration if the scheme is in place since inception, if the FY2009 profit before tax is $15.812m, the 5 executive officers and CFO will share $948,720 and the CEO will get $522,480.

While the IPO is cheaply priced, looking at the most 5 recent IPOs where the share price tanked below the issue price, it will require some effort for the share price to remain above water. I would give this a miss.
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Anonymous said…
Could you pls answer the comment on Cogent? (without the one off item) Thanks.

1HFY2009 profit is only 3.7M. How you project FY2009 as 13.3M?

13 March 2010 10:05
27 March 2010 at 06:19
Mr. IPO said…
Already replied at the Cogent thread. Regds
9 April 2010 at 00:20
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