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IPO Chilli Ratings

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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 tax a
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Xyec Holdings Co., Ltd



Xyec Holdings ("Xyec" or the "Company") is offering 25m Placement Shares at $0.26 each for a listing on Catalist. There is no public tranche and frankly, i don't want to spend too much time on this so please don't expect a lengthy write up. 

The IPO will close on 16 Sep and list on 18 Sep and the prospectus is here.

Principal Business

Xyec provides engineering and IT consultancy services for major manufacturing industries in Japan, such as the automobile and aerospace industries.

Financial Performance

Its a small revenue generating company with less than S$100m in FY2013 and a net profit of around $1.2m. 

The listing PER based on enlarged share cap and assuming service agreement is in place is approximately 14.7x. It is not attractive to me and expensive.

Based on the listing price, the market cap is around $28.61m

Dividends

The Company intends to pay 20% of its net profit after tax as dividends for FY2014, FY2015 and FY2016.

Ratings

I will give it a 0 Chilli Rating for the following reasons:
  • Expensive listing valuation
  • Small firm located in a competitive sector
  • A small cap Japanese company listing on Catalist. It is a matter of time before investors here forgets about it and do expect poor trading liquidity and lower valuation to follow suit.  
This is not the kind of IPO i am hoping to see. SGX will need to get its act together to attract better companies to list here.
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Anonymous said…
IPO market very dry now... :(
13 September 2013 at 19:56
Anonymous said…
Hi Mr IPO, there might not be too much excitement in the IPO market recently but there is quite a lot of speculation regarding a RTO of Albedo. If it were successful, what would be a 'fair price' of Albedo? Thanks!
14 September 2013 at 07:27
Mr. IPO said…
Haha I never follow la
14 September 2013 at 10:23
Anonymous said…
Haha np. If you happen to have any links or broking house research reports on it do kindly share:-)
14 September 2013 at 16:52
Anonymous said…
Mr ipo,

Your rating of 0 chilli is CORRECT. SGX seems to be a rubbish collector.

Another company doing resale business in Sri Lanka, Bangladesh and Pakistan SEWKO has lodged its prospectus.

With close to 1,000 outlets with each contributing a net profit of about 20,000. Another rubbish company.
24 September 2013 at 22:32
Mr. IPO said…
haha i haven't taken a look but may not be as bad as you think lah :)
24 September 2013 at 23:25
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