Just after i complained about a Singapore
IPO Famine on Tuesday, someone asked me today if I want to subscribe for the placement shares of the upcoming company -
Gaylin Holdings Limited. The draft prospectus is
here. Finally i see some decent local company going for IPO!
Hence the reason for the preview this time (usually i not so free :-P).
Anyway, the indicative issue statistics as follows:
Existing no. of shares = 300m.
New shares to be issued pursuant to the IPO = 110m
No vendor share sale
IPO price = S$0.35 - S$0.37
Total IPO raising = S$38.5m - S$40.7m
Market cap @IPO = S$143m - S$151m
Target IPO launch date is mid Oct.
My "gut" feeling of the IPO as follows:
- Current market sentiment is positive and that should spill over to the IPO.
- Company is in the Oil and Gas sector which is one of the 'hottest' right now in the region looking at how Ezion and Ezra are winning contracts. They have been around for a long time and is one of the Enterprise 50 winner in 2009.
- My back of the envelope computation show that the listing historical PER is around 11x, which may present a small upside to around 13-15x if based on historical PER. I am not privy to the future growth but understand that it may get exciting.
- The company is giving out 30% of its net profit for FY2013 and FY2014, which again based on back of envelope calculation show a yield of around 3-4% assuming profit level remain the same. This should provide some 'down-side' protection given that you can participate in both yield and growth.
- Vendors are not selling!
So here you go. Facts presented above. You decide for yourself if you want to call your CIMB broker (or their sub placement agents). Their
'track record' in recent times have been pretty mix depending on how you measure it.
Leave a comment here or in my facebook to tell me if i should indicate my interest or what you will do if you are in my shoes (assuming allocation is not an issue and i will be allotted what i indicate).
1. Hoot 500 lots
2. Buy 100 lots
3. Tikam 10 lots.
4. Don't bother.Your friend bluff you one.
The video on the Company below. Video is the way to go?
Comments
I also wonder how u managed to know the price of the IPO price range when book is not even open
Prelim prospectus also did not mention any sub placement agent is in IPO
They didn't realise mr. IPO. is only a small player and not cornerstone investors.
I would really like to know how to check the list of sub-placement agents. Because I do not have a CIMB securities account at the moment and wondering if it is worth opening one.
sub-placement agents sometimes are 'verbal one' ...so you wont see it on the prospectus. I also dont know how to check since i told you this came from a friend....
I calculated the post listing NAV to be 8.53 cents and its Price/NAV ratio to be 4.1, excluding listing costs. Isn't this very high? The ratio for the Gas & Oil Sector is 1.16 while that for its named competitor, KTL Global, is only 0.61. Further, the FY2012 revenue for both companies are about the same. Theoretically, a high Price/NAV gives poor investing value for subscribers as one stand to lose plenty should the company liquidate or delist.
Pls advise if it is still worth it. Thanks.