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
Comments
http://www.bloomberg.com/news/2010-11-05/stx-corp-stx-offshore-tumble-after-stx-osv-prices-ipo-at-bottom-of-range.html
Of course i think there isn't any problem with stagging given that even xinren does so well on the 1st day but longer term?
Pricing is usually based on institutional demand as "they" set the price. If you look at the MIT and GLP cases, the demand were so great that the book closed earlier than indicated. In the case of STX, the demand from institutions are weaker, but they are no fools either. They will only subscribe to the IPOs if they think that they are going to make some money. As such, i wont be too worried if it is priced at the lower range of the book building price, although I would be asking why are they asking for such a 'discount'. Are there risks which we are not aware of.
The reasons why STX group prices tanked in Korea was because the investors there were expecting a higher pricing for this IPO such that the vendor sale proceeds will flow back to the shareholders there. Since the share prices there has 'risen' in expectation of a good IPO, it has fallen when the reality sets in.
Longer term wise, i think it depends on whether the oil price continue to go up to encourage capital expenditure on oil exploration equipments as well as whether the company is able to win new contracts for its highly specialised vessels. However, in the near term, i believe the IPO is well priced and shouldnt have a 'stagging' problem since it doesn't face the same "credibility" issues as the S-Chips.
if it is a really worthy buy, it ought to be oversubscribed by institution/corner stone investors.
however, it isn't so. in fact, it is being priced at the lower end...
then again, considering the numbers relative to its peers, it's actually quite attractively priced...
feels like a trap, wondering if the big fishes know something that the retail investors don't know.
so hmmm...
1) STX OSV is a market leader in this field.
2) In STX Europe, it is the ONLY profit generating unit in that company, that's explains why they are listing it. From here, we can see that the Koreans from STX are actually honest ppl.
3) If we mark up with PB, PE, Dividend yield, you will realise that the numbers do not lie.
4)Oil price will rise as QE2 had prompt many to hog commodities incl oil
5) If we take a comparison wit STX PO that is listed to SGX, you will realise that they had a history of pricing at lower end.
6) Why do they list in SG? Becos Korea's daewood only command a PE Of 15, while SG's YZJ and cosco and command PE till 45. Since STX still holding on to 68.8% of STX OSV, this PE rise will impact positively on their balance sheet.
According to bloomberg:
http://www.bloomberg.com/news/2010-11-07/stx-group-plans-ipos-for-cruise-ship-builder-china-yard-as-orders-rebound.html
"STX OSV Holdings Ltd., which makes offshore vessels that support operations on oil rigs, may win about $3 billion worth of contracts this year, about quadruple last year’s tally, Lee said. That would give it a backlog equivalent to 18 months’ work, he said. An order from Brazil for eight vessels may be signed by year-end, he said, without elaborating."
Basing on the infomation on the prospectus, STX OSV had already won an contracts that are worth $10.154Bn Norway Korner (US$1.74534Bn using exchange rate of 1 NOK = 0.171890 USD)
This means that its order book might potentially double within the next 2 months!
PH
If u read deeper into the propectus, the way they receive payment is like how Singapore once does for its deffered payment scheme. It may be due to the 25% (an increment) from the previous they collected for 5%. Then it can also be due to orderbook rise as the oil demand peaked up resulting in an increase in order book.Hence, the financial revenue is needed.
If we ignore the revenue, it is just like saying when K REIT acquire MBLC, the extra revenue gain is useless.
It leads me to believe that perhaps, the financial expenses are being deferred to the second half 2010. If that is the case, then second half 2010 will be in the red. In short, you cant really use 6 months 2010 as an indication of full year earnings.
-FZB
http://www.sgx.com/wps/portal/marketplace/mp-en/investor_centre/investor_guide
Can I ask what is the intended selling price? Is $1.13 a reasonable one?
Also, high PE at 35.3 and high PB deterred me from applying.
Pahlawan has opened his mouth to say "avoid" for this counter.
Wonder why you give 3 chillies for this counter ?
(1)ever see the Sunday times issue, while i was doing my own analysis i dint know it was delisted from oslo. There are so many cases of counters delisting from SGX to relist in HK as well, so dont think it is actually an issue.
(2) i am not Pahlawan as this is my own view, and dont know who he is.. perhaps you want to ask him why he gives sharkfin for Xinren while i give 1 chilli? hahaha
(3) i dont know how the stock will perform when it list and dont know what the demand from institutions are, so lets see the balloting results tonight.... will only know if my analysis is correct after it list ah.
Also, parent hold 72%. And allotment given to 2 major shareholders (5% each). Total not for sale is 82%.
Looking at the rest, majority is 50 lots and above. Hence, they are not those who will stag the market easily.
Hence, since total in public hands is so low, this stock is gonna rise!
Any recommendation guys to hit the IPO........
Lots of smart-guy comments here.
Check out this one:
http://sg.finance.yahoo.com/echarts?s=MS7.SI#symbol=ms7.si;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;
Good luck with your future speculations...