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IPO Chilli Ratings

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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IPS Securex Holdings Limited



IPS Securex Holdings Limited ("IPS" or the "Company") is a "one-stop" security solutions provider and is placing out 12m shares at $0.35 each for a Catalist listing. There is no public tranche and the IPO will start trading on 30 June 2014.The market cap is $26.3m based on the IPO price.

The Company provides security products and integrated security solutions to commercial entities and government bodies and agencies in Asia Pacific. The map below shows its distribution agreement with Ultra Electronics.


According to the prospectus, the prospects for the Company is good due to heightened security concerns from terrorism and political/social unrest. 

Financial Highlights


The revenue has been erratic of around $5m and then spiking to $10m in FY2013. Net profit has also been pretty erratic and you can see that it is probably they managed to get a big project in FY2013 which resulted in the high turnover and the exceptional profit that year.


Even if i give it the most aggressive EPS of 2.3 cents, the valuation is rich at 16x PE and i don't think current year FY2014 EPS will be close to that of last year. The low NAV of 8 cents per share is not going to help support the share price post-listing either.

Use of Proceeds


The table shows you the majority of proceeds raised are going to the service providers.

Shareholders



The Company will be majority owned by Chan Tien Lok (62%) and Kelvin Lim (16.8%) post IPO. The CEO will draw a pay of $23k a month and has a generous profit sharing ratio. He will be entitled to 10% of the NPAT if NPAT is > $800,000


Mr IPO ratings

There is no public tranche and frankly the valuation is rich and the CEO is well paid. You can find better quality companies at lower valuation. In this regard, i will give it a 0 Chilli rating and give it a miss.

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steve said…
Hi this is nice communication for sharing the details of company and the turn over by which people can easily understand.

DIN 7 | DIN 1444
28 June 2014 at 15:55
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