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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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Huationg Global Limited



This is more for records purposes

Huationg Global Limited ("Huationg" or the "Company") is offering 27.5m shares at $0.20 each for placement for a listing on Catalist. The offer has closed on 5 Dec and will commence trading on 9 Dec 2014. The market cap based on the IPO price will be around $30.3m

Principal Activities

The Company is engaged in the provision of civil engineering services for infrastructure projects and ancillary inland logistics support services. As of the date of the prospectus, the Company has an order book of S$114.3m which will be recognized as revenue over the next 3 years.


I list the major ongoing projects above for your information.

Financial Highlights


Based on the adjusted EPS of 2.79 (assuming service agreement is in place and post IPO shares), the Company is listing at a PER of around 7.2x, which is reasonable. Based on the 1H 2014 EPS of 1.98 cents, it represents a growth of 49% over the prior year. 

Assuming full year EPS is 25% growth, the EPS will be around 3.49 cents and that translate into a PER of ~5.7x. Having said that, i am just "guessing" the EPS figure and is not privy to how the full year results will turn out.

Interestingly, the NTA per share is 24.69 cents. In other words, the Company is listing below its book value.

Mr IPO ratings

I will skip the what i like about the Company and my concerns since the IPO has already closed. Regular readers know i don't like this sector per se and that it is such a small cap family-owned company. The Ng family will continue to own ~80% of the Company post IPO, perhaps this is one reason why they are fine with a "lower than market" IPO valuation.

I have to say the IPO is priced very reasonably, as such i believe there will be some upside to the stock price. My gut feel is that it will trade between 23 to 28 cents (slight premium to its NTA) but liquidity will dry up over time.

Happy digging


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