Singapore Institute of Advanced Medicine Holdings Ltd
Singapore Institute of Advanced Medicine Holdings Ltd ("Sam" or the "Company") is offering 114m new shares comprising 4.415m Public Offer Shares and 109.585m Placement Shares at $0.23 each for a listing on Catalist. The Company aims to raise $26.2m and the majority of the proceeds will be used to repay debt and the balance for working capital. The market cap based on the IPO price is $231.8m and the offer will close on 14 Feb at 12 noon and starts trading on 16 Feb 2024 at 9am. Principal Business SAM is a healthcare service provider using advanced technology for early and accurate diagnosis to detect and treat cancer, neurodegenerative and cardiovascular diseases. SAM has strategic collaborations with public and private institutions for research and clinical work. SAM's goal is to create a comprehensive one-stop ambulatory cancer centre to undertake the challenges to fight cancer and is one of the first to adopt proto beam therapy treatment in Singapore. Fi
Comments
I wanted to ask how you came up with the 8-10x forward PE for techs? Every company seems pretty unique even if they're in the same industry. Apart from the usual financial valuations, the company fundamentals seem really solid. I'm coming from an operations background and I've worked with ppl in this industry.
Avi-tech's had 20 yrs in the business. Closest competitor is another local company that ipo'd in '93, is currently twice Avi-tech's cap and sales, but makes only half the profits, so they've got to be doing something right. Avi-tech's seemed to have secured a pretty good niche in providing high-end burns and have an incredibly diverse set of customers. Their also close to completely depreciating their equipment in a few years (of course the equipment can prob carry on well after the accounting lifetime), their balance position will be even more incredible. The only concern is their high receivables exposure.
What I'm unsure is, if a company is fundamentally solid and will continue growing steadily in years to come, how high is too high? Is it really fair to put a matrix on it? What's to say it won't hit $1, $2, or more by next year? Or maybe we'll hafta wait and see if their China operations take-off.
Thank you for your posting and if i read you correctly, you are from the IT industry and somewhat very familiar with this Company. Your knowledge of this company will clearly put you in a 'clear advantage' compared to investors like me who rely on prospectus to 'guesstimate' future year earnings. Many companies try to 'boost' their earnings in the year of listing so as to acheieve a more attractive valuation and your concern for high AR is not unfounded. The valuation matrix of 8-10x is given by the market for a start. This valuation matrix can go up or down depending on whether the management is able to execute its plans. As such, you are right to point out that nothing will stop it from going to $1 or $2, but it will take time for the market to be familiar with them.