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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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Chew's Group Limited

Chew's Group Limited ("Company") is offering 12.79m Placement Shares at $0.25 each for a Catalist listing. The offer will close on 24 Feb at 12pm but there will not be any public tranche. The Company is one of the leading producers of fresh eggs in Singapore and specialize in the production and sale of designer eggs.


Sales grew from $14.5m to $19.2m over the last 3 years and net profit swing from $1.5m to $3.05m during the same period. The post IPO EPS for FY2010 will be 3.61 cents and that translate into a listing PER of 6.9x. The PE will be higher if you consider the service agreements that will likely be put in place. 


The market cap based on the listing price is $21.12m. This is a ultra small cap SME but the business is stable and eggs are always in demand here barring any bird or "chicken" flu breakout.  The company intends to distribute at least 20% of its net profit for the next 3 years as dividends. It is interesting to note that Prime always receive 'shares' as part of its fees for managing IPO, perhaps Prime should receive 'payment-in-kind'?


Since this is a 'placement' only IPO and has small float, it will likely be 'well supported' as majority of the shares are still with the Chew Family (68% post IPO). It is likely to be range bound post listing and the company would do well to expand outside Singapore as the market here is limited. The company is also exposed to a 'single product' risk and a bird flu breakout in Singapore will likely affect the company badly. I would give it a miss.
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