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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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Biolidics Limited


This is purely for information only as the Company is already listed. I will not do much analysis on it. Apologies for missing this as i was busy traveling this month.

Biolidics Limited ("Biolidics" or the "Company") placed out 27.5m shares at $0.28 each for a listing on Catalist and a market cap of $67.9m. The Company was listed on 19 Dec (and closed at $0.235, down 16%).

Principal Business

The Company is a medical technology company focused on the development of cell enrichment systems, which when combined with other analytical tests, have a wide range of applications for cancer diagnosis, prognosis, treatment selection and monitoring.

Biolidics has developed a fully automated IVD medical device which relies on a novel patented technology to separate and enrich cancer cells from blood as illustrated below. 


Business Model

The business model of the Company comprised of sale of the ClearCell FX1 System, the accompanying biochip and other consumables to academic and research institutions, hospitals and laboratories, which use their medical devices.

Financials

As you can tell from the table above, the Company is loss making and incurred a loss of $4.23m for FY2017 (pro forma). Given that Biolidics is a pre-revenue stage, it will be likely continue incurring losses in the next few years and there is a high chance that the Company will need to raise money again in future, thereby causing dilution to existing investors.

In addition, the Company's NAV is around 4.07c and the share price is issued at a huge premium to its NAV of 4.07 cents (pro forma). If the Company continue to burn cash, it will need to raise money again shortly and investors will be further diluted if they do not participate in future fund raise.

Prospects

Frankly, i know nuts about medical technology but here is what the prospectus has to say about its own prospects.


Conclusion

I didn't spend much time thinking about what i like about the Company and the concerns which i may have. My own view (even without the benefit of hindsight) would be that local investors are not able to appreciate biotech companies and with the poor sentiments currently, it will be challenging for unprofitable companies to sustain its share price post listing. Perhaps it is a blessing in disguise that there are no public tranche!

I have taken the Christmas break to catch up on my IPO and blog posts. Here's wishing all readers a Merry Christmas!

Cheers, ðŸŒ²ðŸŽ¶ðŸŽ‰
Mr. IPO
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