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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 ...
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PS Group Holdings Ltd


PS Group Holdings Ltd ("PS" or the "Company") is offering 20.4m Placement Shares at $0.25 each for a listing on Catalist. It is actually very very surprising to see UOB bank venturing into the Catalist space as the amount raised is only $5.1m. So hard up ah? :-P This space is usually dominated by PrimePartners and other smaller players. Perhaps we can see more Catalist listing from UOB going forward? The offer will close on 9 July at 12pm but then again the timeline is "meaningless" as there is no public tranche. The prospectus is here.

PS Group supply quality fasteners with a product range in excess of 15,000 different types and size of fasteners and supply to 200 customers in more than 45 countries. 


Financials


As you can see from the financials above, the revenue has been pretty stagnant for the last 3 years and the progit before tax was on a declining trend, dropping from $1.9m in FY2010 to $1.3m in FY2012.

Valuation

The EPS assuming the service agreement has been in place and enlarged share cap will be 1.68 cents and that translates into a historical PER of around 14.9x, which isn't exactly cheap. The market cap post IPO will be $17m.

Proposed Dividends

The Company intends to pay at least 30% of its net profit after tax for FY2013 and FY2014 as dividends. Assuming EPS remains at 1.68 cents, the dividend per share will be 1.68 x 30% = 0.504 cents. This translate into a yield of around 2%. 

Ownership

The company is held by Mr. Teo Choon Hock (38.5%) and Mr. Kwek Keng Seng (31.5%) with the public holding the balance 30%. 

My Ratings

This is a small cap company with a net margin of less than 10% in a challenging industry where barriers to entry is pretty low . The business is probably stable but not going to see a lot of growth. Unless you are into small caps, i will probably give it a miss from a fundamental view (not that you can apply for it at the ATM anyway). Probably the small float means that most of the shares are placed out to friends and family. ^_^

Happy watching (from the sidelines again).


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Anonymous said…
Mr Ipo
I am a regular customer of PS group. They are well know in service reliability and quality in the industry all these years. How you foresee it' opening price will like. Thinking of making some quick money? Any advice. CK.
7 July 2013 at 10:15
Mr. IPO said…
I don't know. Guess open around 25-29? i don't usually speculate such small listing so unless you are already allocated placement shares. I would avoid speculating in general unless you are a pro trader. Which I am not.
7 July 2013 at 10:59
Mr. IPO said…
Amazing placement here. Hahaha. Wow ^_^
26 July 2013 at 15:39
Anonymous said…
Hi i am also regular customer of PS Group and i have buy many stocks and what kind of placement open please share it.

dowel pins |clevis pins | DIN 7
31 July 2013 at 18:10
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