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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 ...
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Medinex Limited


MediNex Limited ("Medinex" or the "Company") is offering 30m Placement Shares comprising 26m New Shares and 4m Vendor Shares at $0.25 each for a listing on Catalist. Since there is no public offering, i am not going to spend too much time and effort on this... as i am on holidays. ðŸ˜‹ The IPO has closed and will be listed on 7 Dec with a market cap of $32.80m. 

Principal Business

The Company is a Singapore-based medical support services provider, specialising in providing professional support services to medical clinics. Services include setting up of clinics, facilitating applications of licenses and business support services such as account and tax agent services, etc. 


Financial Highlights


The beauty of this IPO is at least the Company is profitable. Based on the adjusted EPS of 1 Singapore cents, the PE is around 25x (29x if the service agreement is in place). 

Assuming EPS grow to 1.7 to 1.8 Singapore cents for FY2018, the PER will be between  around 13.8x to 14.7x.

The Company intends to distribute no less than 70% of its net profit after tax for FY2018, FY2019 and FY2020.

What I like about the Company
  • Company is profitable and likely to pay dividends - One good thing about this IPO is that at least it is profitable and the revenue and profitability is on an uptrend. Doctors are probably bad book keepers, so with IRAS cracking down on doctors evading or under-reporting their income, there will be an increase in demand for their services over the longer term. The Company also intends to pay 70% of its profits as dividends.
  • Healthcare sector is more resilient to a downturn - You need to see a doctor in good time and bad and doctors need such support services as well. The support services are usually quite sticky and recurring in nature
Some of my concerns
  • HC Surgical selling vendor shares sends a wrong signal - The IPO is via placement and i am not sure why HC surgical is "cashing" out at this point in time when sentiment is not exactly strong. While the amount is not really significant, it sends a wrong signal to the market
  • Poor market sentiments - The Company is listing at a terrible time where market sentiments is bad and prices are volatile globally. This would have a negative impact on the share trading post listing
  • Ease of competitors entering the market and the scalability - It is not difficult for someone to replicate the services to be provided and the Singapore market is limited in size. 
Chilli Ratings

Since there is no public tranche, there is really no motivation here for a chilli rating. The Company is either courageous or desperate to list under current market sentiments and HCS is probably "desperate" to be selling some vendor shares. The valuation is fairly priced at around low teens PER (it is not a true healthcare company per se) and the intent to pay out 75% of its profits as dividend will probably help "support" the price.. I would probably have given it a one chilli rating (or better) during better times but it is hands off the IPO market for me for now... 



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