This is getting out of hand... a 3rd Catalist listing in a row with no public tranche. The Managers and underwriter all lost "something" during the recent turmoil that they don't dare to do a public tranche or they know the public has become smarter? :-P
ISOTEAM ("ISO" or the "Company") was founded in 1998 and is a building maintenance and estate upgrading "specialist". The Company spend a lot of time projecting its "green image" (which is good) but at the core, it is just a maintenance and contractor involved in Repairs & Redecoration Works ("R&R") and Addition and Alteration works ("A&A").
The Company is apply to list on Catalist and is offering 32.2m shares at $0.22 each via placement. The prospectus is
here. The offer will end on 10 July at 12pm. The market cap post IPO is around $25.9m
Financial Highlights
I think they should use something which investors can see clearly. Such picture above is not very helpful. Anyway, revenue grew from $26.6m in FY2010 to $35.4m in FY2012 and net profit grew from $2.6m to $3.4m in the same period (even though there was a blip in FY2011). At least this company looks and feels more "promising" than the
fasteners company just reviewed. (not that i am recommending a buy).
The EPS assuming service agreement is in place and based on enlarged share cap is 2.09 cents. That translate into a listing PER of 10.5x. The order books looked pretty good and that may translate into better earnings in FY2013 and FY2014.
Shareholders
Interesting to see Nippon Paint Singapore taking a stake in this company. Probably due to the close working relationship between the 2 firms.
My Ratings
You know i am not a fan of small cap catalist companies and the fact that there is no public tranche render my Chilli ratings "useless". Are they trying to make me out of job? :-P
In any case, i would have given it a zero to 1 Chilli rating if there was a public tranche.
Not getting too happy watching from the sidelines (again). Hope i will get some real IPO soon!!
Comments
I m impress with their 'green' initiative as they are currently upgrading my estate. I think they r very different from other Renovation Contractors in town. I have faith on it. Can I invest on them for mid long term? What do you expect on its share performance?
1. If you like what they are doing and would like to invest in them, please do so but i wouldn't be able to tell you what the share price performance will be.
2. Revenue and net profit seemed to be on an uptrend with a good order book. But not for me personally. I don't like the industry and the small cap per se.
3. It is ok without public tranche of course. But it also means you wouldn't be able to buy it at the IPO price if everything is via placement. I am not sure if it is "safer" to place out to close friends and relatives but that is one way to look at it provided the friends and relatives are vested for a long term.
its price if 0.22 over valued or reasonable?
I am looking for short term gain
I won't be able to tell you whether above 26c is a good buy unless you can tell me what this years and next year's EPS will be. I am not even saying 22c is a good buy. 22-26 is just a guess of the opening price range. Haha.
SINCE U SO 'NEGATIVE' ON SMALL CAP IPO OR LISTING @ CATALIST, I GUESS INVESTORS SHALL STAY OUT FROM ALL OF IT? BTW, THE LISTING REQUIREMENTS @ MAIN BOARD R SO HIGH NOW, HOW MANY LOCAL SME R QUALIFY? ANY UPCOMING MAIN BOARD IPO THAT U RECOMMEND BESIDES REIT?
MIKE LUDGE
SPH Reit and OUE Reit have both lodged their preliminary IPO prospectus.
What are your views?
Cheers.
Few months ago I would have been very excited...
Now ah... Need to think thrice...
After giving it much thoughts, frankly, i don't know if there is a book that will teach you to "analyze like how i do".
It has been a combination of knowing how the various valuation methodologies work + paying school fees to Mr. Market + experience gained over the years + watching the markets + reading widely.
As such, my views are very biased due to my personal experiences. So you have to accept that when you read my blogs. Just like i am biased towards small caps and China stocks :P
Congrats. You seem to have attracted quite a lot of new readers.. I think it is good; though many of their comments are of poor quality... Perhaps, they would benefit and learn from you along the way...
I really respect your patience and your generosity.