Skip to main content

IPO Chilli Ratings

IPO Chilli Ratings
Click to understand how it works

Featured

Posted by

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
Post a Comment
Read more
Labels
Posted by

Axcelasia Inc



This is for record purposes only. Sorry for the late report as there is no public tranche and i am not vested

Axcelasia Inc ("Axcel" or the "Company") is offering 47.52m placement shares at $0.25 each where 35.52m will be new shares and the balance vendor shares. The IPO closed on 25 Nov 2015 and will start trading on 27 Nov 2015. The market cap is around $40m based on IPO price.

Principal Business

The Company and its subsidiaries provide integrated professional services to government-linked entities and corporations in tax advisory, business consultancy, enterprise management system and business support.


Key Strengths

According to the prospectus, the Company has the following key strengths:
  • Good track record
  • Integrated service provider
  • Flat management structure
  • Experienced and dedicated management team
Future Plans

The Company intends to expand in Malaysia and ASEAN region, enhances its range of professional services and support infrastructure.

Financial Highlights


This is a "human business" where revenue hits RM 8.3m in FY2014 with a profit before tax of RM 1.59m. The revenue and income spiked up to RM16.6m and RM6.05m for the 6 months ending HY2015


Based on the exchange rate of 0.33, the adjusted EPS for HY2015 is around 3.77 x 2 x 0.33 = Singapore 2.49 cents. That translate into a listing PER of around 10x but frankly i am not privy to 2H results and will be cautious on such projections.

What I like about the Company
  • Asset light business but having right management is critical as it is an advisory business
  • Shareholders are tightly held by 3 key individuals, which means interest is aligned.
  • Operating cash flow positive company
Some of my concerns
  • Weak RM currency will be a drag on reported earnings in SGD
  • Unpredictable earnings. A big question about my full year forecast as fees may not be stable
  • A small cap company listing at rich historical valuation to its NAV
Peers

A similar listed company is Zico Holdings Inc, lised in Nov 2014. It is still above its IPO price but trading at ridiculous valuation.


Mr IPO ratings

I will give it a one chilli rating given its relatively small market cap and "unexciting" business proposal but given the low number of shares and the quality of institutional investors, the Company may see its share price well controlled!

Placement results


The list of placement investors seemed quite well received! Good luck to those who bought the shares.



Email Post
Labels:

Comments

Anonymous said…
Would u be writing a post on BHG Retail REIT ? Thanks.
3 December 2015 at 07:56
Mr. IPO said…
Currently traveling. Probably do it on coming Sunday. My gut feel is nothing to shout about...
3 December 2015 at 16:29
Anonymous said…
This BHG retail reit may go under water after IPO, buyer beware :-(
6 December 2015 at 08:09
Post a Comment