Figtree Holdings Limited ("Figtree" or the "Company") is offering 54.546m placement shares at $0.22 each. This is a pure placement tranche with no public shares and the shares will be listed on Catalist. The IPO will end on Nov 7, 12pm.
Principal Business
The Company is basically a main contractor specializing in the design and building of commercial and industrial facilities.
Financial Performance
It is interesting to know that this Company basically grew from zero revenue to $60m in 3 short years and the adjusted EPS as of FY2012 is Singapore 1.37 cents. Assuming the profit increased by 50% in FY2013, the adjusted EPS will be Singapore 3.06 cents (I am just guessing).
Shareholders
Do note that Freight Links (a listed company on the mainboard) has a 20% stake in this Company post IPO and it increased its stake by buying an additional 13.1m shares at $0.20 each from Danny Siaw in October 2013, probably in order to maintain its shareholding at 20% to make it an associated company. The 20c will probably served as a "independent valuation" of the firm.
Valuation
Based on the IPO price of 22 cents, assuming the service agreement is in place and using the enlarged share cap, the historical PE is around 15.2x. Using the adjusted EPS of 3.06, the forward PE is about 7.2x.
Mr IPO's rating
Given that there is no public tranche and i am not privy to its forecasted earnings plus the short operating track record, i will give it a one chilli rating.
My gut feel is that given the small float and low priced IPO, the downside is probably limited for a start but whether the share price will go up post IPO will depend greatly on who they place out the shares to and its subsequent financial results.
Comments
way to go brother ! we are all very proud of you!
On Pacific Radiance, the duo helmed Jaya. Is this track record a positive or negative factor?
Jaya was run to the ground and went under JM to restructure and had to sell assets to cover its debt. It was then taken by a team of new management.
Only until few years later, it was later it was able to give out dividend and etc.
Would the same thing later happen to Pacific R???
Thank you for pointing out my mistake. I must apologise to the two gentlemen.