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Toku Ltd - Balloting Results

Toku , a Singapore-incorporated AI-powered customer experience (CX) platform, today announced the successful close of its initial public offering. The Company will be listed on the Catalist Board of the Singapore Exchange Securities Trading Limited following the completion of the offering, marking the first IPO of 2026 for the exchange.   You may refer to the ballot results below: Sharing the key highlights from the press release, as well as a quote from Thomas Laboulle, Founder and CEO, Toku.  Toku, the Singapore-incorporated AI-powered customer experience (CX) platform secures full subscription on SGX Catalist, raising  S$16.25 million  at  S$0.25  per Invitation Share.  The Public Offer attracted strong interest and was  31.9 times subscribed , from 1,115   valid applications for  63,888,300 Public Offer Sh...
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Sim Leisure Group Ltd

For Information Only - No public offer


First of all - my sincere apologies. I had a family matter to attend to and was rather pre-occupied with it. As the IPO has now closed, i will just do a quick summary for completeness sake.

Sim Leisure Group Ltd ("Sim Leisure" or the "Company") is offering 26.4m Placement Shares at $0.22 each for a listing on Catalist and there is no public offering. The IPO closed on 27 Feb and will be listed on 1 March 2019 with an initial market cap of $29.53m

Business
Sim Leisure is a developer and operator of theme parks based in Penang, Malaysia. The Group is a retro-eco theme park developer and operator that provides affordable quality fun where everyone can play the games of yesteryear, recreated for today. The website to the theme park is here. 


Financial Highlights


The Company's revenue has stayed consistent from FY2015 to FY2017 at around RM 9.7m but net profit declined to RM 1.3m in FY2017. Having said that, the unaudited revenue for 1H2018 jumped to RM 8.4m and net profit RM2.0m. This is due to increase in ticket price and the number of visitors with the opening of ESCAPE Waterplay in Nov 2017. If we do a simple 1H X 2 projections, revenue will likely come in at around RM 16m and net profit at RM4m.

The Company has also announced a dividend policy of 30% of its net profit attributable to owners for FY2019 and FY2020.

Assuming EPS is around 0.52 cents x 2 = 1.04 cents, the forward PE is around 21x, which is not exactly "value for money".  Assume a pay out rate of 30%, that will translate into a DPS of 0.312 cents into a yield of 1.4%. 

What i like about the Company
  • Easy to understand business  - the theme park business is pretty straightforward and any increase in ticket prices or visitors will translate to the bottom line.
Some of my concerns
  • Highly exposed to Penang Tourism - The profitability of the Company will be highly dependent on the tourism receipts. For investors who view loves that exposure, it will be a positive. Having said that, the Company is trying to diversify outside of Malaysia and the next stop will be China
  • Currency exposure - The MYR exposure can be challenging if it continues to be weak and when the Company profits is translated back to SGD for reporting purposes
  • Capex may be high - if the Company wants to expand to new geographies or expand its theme park, it will then need to incur capex and there will be risk if the rides turn out to be less than popular
  • Valuation is high - the listing valuation at 22x PER is not exactly cheap. In fact, it is pretty expensive. For comparison - Genting Singapore is trading at 16x PER and 3.4% yield. Six Flags Entertainment that is listed on NYSE is trading at 17.7x PER and 5.8% yield
Chilli Ratings

If there is a public offer, i would probably have avoided it given that there is better alternative in Genting, Six Flags or other similar companies.
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