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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

Afterthoughts on Procurri ratings

Readers of my blog know that i hesitated quite a bit when I gave my ratings on Procurri over the weekend. In fact, i was quite hesitant to give it a 2 chilli rating but what eventually made me do it was the positive sentiments and demand from so-called "branded institutions" and you saw 4 of them in my update on balloting results.

Well, the beliefs that DBS was a "picky" manager and the presence of long only institutions is good for the IPO are probably "unfounded". The IPO didn't open as i expected and even tanked towards end of the day. 

While the ratings were done in good faith, I am actually quite upset with myself for not giving it a lower rating despite my reservation about its high valuation. As such, i am sorry to readers who was allotted shares based on my review.  

I would like to take this opportunity to share a few "lessons" on IPO for readers.
  1. Always invest based on your own analysis and understanding. My views should be just a reference and not a decision point
  2. Always have a plan when you subscribe for a IPO on the price level to take profit and the price level to cut losses. 
  3. If the IPO does not perform accordingly to your expectation, make sure you have a a cut loss plan and move on.
  4. IPO punting is not a substitute for retirement or long term investing. 
On a related note, readers always asked when the IPO review will be. You will have to be patient as this is not a full time job for me. I will try to do the write up over the weekends before the IPO closes.

Happy IPOing


Comments

Anonymous said…
Support u! Thanks for all the posting. Dont be so hard on urself.
Anonymous said…
Mr ipo..

I have been following your blog for sometime. This time you have missed the target somewhat ... but your assessment have been right MOST OF THE TIME.

On the whole I have benefited from your sharing and this time I lost a bit. I do not put the blame on anyone especially you. Please do not feel sorry or blame yourself.

I continue to look forward to your writing and thank you for your efforts.

Your sincere reader
Mr. IPO said…
Thanks for the kind and encouraging comments :)
Lynn said…
Thank you for your ipo blog sharing it have been quite beneficial to me, always can learn something from your blog and make it my own,i will read your view as reference and still do my own ipo assessment. Thank you for the effort and look forward to your posting.
Anonymous said…
Keep up the good work. We will support you as always :-)
Jia You!!
Anonymous said…
Thank you for the time and effort to share your knowledge and experience with the rest for us!

It is sad that people take your post for granted and request for it when you don't have an obligation to do so.

Thank you!
Anonymous said…
Following your blog since i started trading. Ratings whatever you have given so far were almost perfect. sometimes our predictions may go wrong, so dont be worried on that. Keep up your good work going. looking forward for your analysis on upcoming ipos :).
Anonymous said…
Its okay. Humans do make mistakes and errors. Just learn and move on. If we can perfect everytime, we can be GOD. Dont worry as I do take your comments as reference and a guide. Do continue to do your write up. Thanks.
Anonymous said…
Some people are just rude about asking for your reviews, as if they are entitled to it. But many others, like those of us who post encouraging comments, are also following your blog. I will continue to make it a point to post thank-you comments, so let's not let the small things/people in life bothers us! LT :)
george_patlabor said…
Bro. Firstly, thanks for all the detailed analysis of all the IPOs on your blog. All have been most helpful.

I am a small time investor. And I also learnt that individual have to do "own research" for all investments. It will be unfair to blame you for a wrong judgement/analysis (which is rare). Even paid financial advisers also sometimes gives crappy advises; who is to blame "free advise/analysis"?

Please keep up the great work. Much appreciation from me.
Unknown said…
Hello!

I would like to chip in to let you know that you shouldnt feel bad. People should go in knowing it's never a sure thing.
Your analysis and effort to share your picks allows me the freedom to freeload off your knowledge, which is what most of your readers do anyway.

Dont need to feel bad lah bro, we win some, we lose some. My own research would not have ended up in me making a different call anyway.

Money can always be made back. Will be looking forward to your next write up!

P.S. in the meantime, you think i shld dump the counter at its current price?
Unknown said…
Mr Ipo, i always appreciate your reviews on IPO and see it as a good reference. Do not feel upset about the wrong prediction, the market is always unpredictable and no one is infallible. Will continue to peruse your website as a good guidance to my investments :)
han said…
Mr Ipo, you shouldn't feel bad as you are just posting base on your assessment. Readers just have take your post as reference only.

Your posts so far have been good. Keep it up ! Cheer :)
Unknown said…
You have great analysis and don't be too sad. I knew it was a tough decision to make but one should know the risk as well. As it was quite diluted as declout has the biggest share. Anyway, I am interested on your take on ec world reits. :)
Unknown said…
No need to say sorry cos we have answer of our actions. I think many of us here benefits from your analysis includes me. Really appreciate your effort. Thanks.😊
Anonymous said…
Mr. IPO

Mature readers of your blog should be aware that no one is 100% correct all the time. So, do not be too hard on yourself.

I have benefited from your analysis, and had never expected you to hit on the spot every time. So, please carry to the good work. Hiccups are to be expected in life.

Support!