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Singapore IPOs: Why I No Longer Cover Every Listing

Some readers may have noticed that I have not been writing about every Singapore IPO since last year. The simple reason is that life has become busier. Between my day job, an increasingly packed travel schedule, family commitments and desire to play more golf, I have become much more selective about how I spend my time.  Writing detailed IPO reviews takes time — reading prospectuses, analysing financials, comparing valuations and understanding the competitive landscape. While I still enjoy investing and writing, I no longer feel the need to cover every IPO that comes to market. Instead, going forward, I will probably focus only on IPOs where I am seriously considering investing my own money or where there is something particularly interesting that is worth discussing. I suspect this will make the blog more useful as well. Rather than writing about every deal, I can spend more time sharing my thoughts on the handful that I believe deserve attention. That bring...
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First Sponsor Group - Balloting Results

First Sponsor Group announced its balloting results where the invitation is 1.75x subscribed. I must say this is a weak subscription.

The public tranche balloting rato are as follows:


The probability of getting some shares if you apply is more than 50%, with those applying 10 to 49 lots getting 4 lots each. 

I don't see any big names in the placement tranche other than the cornerstone that was announced earlier but not part of the invitation and this is such a poor announcement where they did not even disclose how many shares were allocated to the three "substantial applicants" below other than a cursory "more than 5%". Terrible.


I have given my rating on this stock previously. If you asked me if i am "bearish" for its IPO debut, i have to tell you that my gut feel is that it should debut above its IPO price for a few reasons.

  1. The shares are tightly held. There are no much free float and i believe the holders are strong hands and the tycoons have many friends.
  2. The shares are fairly priced whereby the sponsor sold at book value but its at a discount to the market value. 
Having said that, i am not expecting a firework kind of debut as well. It will do well to hold between $1.50 to $1.60. Anything above $1.60 will be a bonus to me.

Happy IPOing.


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Anonymous said…
what about Alliance Minerals?
20 July 2014 at 12:30
Anonymous said…
Pretty favourable comments in yesterday's ST on FIRST SPONSOR. 7.7xs subscribed. Hong Long and Kwek 's brand names should add credence to the counter.

So you have been lucky again in your ipo bid ??? If so good for you.
20 July 2014 at 16:01
Mr. IPO said…
Haha unfortunately never apply. :) good luck if you got this
20 July 2014 at 16:17
Anonymous said…
Debut for First Sponsor not as good, btw would u be commenting on accordia golf trust?
22 July 2014 at 20:06
Anonymous said…
Hi Mr Ipo, this no vol at all... hong leong nv come out and support...

if u were me, wld u continue holding and hope for best or just cut??
23 July 2014 at 22:53
Mr. IPO said…
I really don't know ah. Depends on how many lots u have and why u applied for it leh. Already say not puntable. :( you doing national service for them?
25 July 2014 at 08:49
Anonymous said…
8lots... haiz... my naive thinking that hong leong etc will hold it...
25 July 2014 at 09:13
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