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Singapore IPOs: Why I No Longer Cover Every Listing

Some readers may have noticed that I have not been writing about every Singapore IPO since last year. The simple reason is that life has become busier. Between my day job, an increasingly packed travel schedule, family commitments and desire to play more golf, I have become much more selective about how I spend my time.  Writing detailed IPO reviews takes time — reading prospectuses, analysing financials, comparing valuations and understanding the competitive landscape. While I still enjoy investing and writing, I no longer feel the need to cover every IPO that comes to market. Instead, going forward, I will probably focus only on IPOs where I am seriously considering investing my own money or where there is something particularly interesting that is worth discussing. I suspect this will make the blog more useful as well. Rather than writing about every deal, I can spend more time sharing my thoughts on the handful that I believe deserve attention. That bring...
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800 Super Holdings Limited

800 Super Holdings Limited ("800" or the "Company") is offering placing out 32.214m shares at   $0.22 each. There will be 30.214m new shares and 2m vendor shares.  The IPO will end on 13 July at 12pm but there is no public tranche. The Company is basically a waste management company but somehow like to position themselves a leading "environmental solutions provider"...sigh!!!


The 3 key businesses are Waste Management and Recycling, Cleaning and Conservancy and Horticulture.  The Company is one of the four licensed public waste collectors and over 20 years of track record in the industry. 

The directors intend to recommend and distribute dividends of not less than 20% of its net profits attributable to shareholders for FY2011 and FY2012.


Revenue grew from S$55.4m in FY2008 to $69.6m in FY2010 and net profit after tax grew from $2.2m to $5.2m during the same period. From the prospectus, assuming the service agreement is in place in FY2010 and based on the enlarged share cap of 178.8m, the EPS will be around 2.54 cents and that translate into a listing PER of 8.7x. The market cap post listing is around $40m.


The Company intends to use the proceeds to expand its materials recovery capacity and the existing fleet of rubbish trucks, if i use plain English.  I dont have much feel about this IPO, think the company is fairly valued and future prospects will greatly depend on whether they win or lose the waste management contracts in Singapore. I would give this a miss.
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Anonymous said…
YOU WERE WRONG
21 July 2011 at 15:55
Mr. IPO said…
The share price may cheong way above its IPO price on the first day but considering this is a placement share, can public investors get it at 22c and sell at 30c? I just hope people didn't jump in on the opening day.

No that the share price is 20c and below its IPO price, am I right or am i wrong? There is no right or wrong in market, just my personal opinion and only Market is right. If you can get out at a profit, you are right, if you cant, you are wrong....

The operator for this stock is from one of Singapore biggest brokerage house and operates a "push and distribute" model...
27 July 2011 at 08:54
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