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IPO Chilli Ratings

IPO Chilli Ratings
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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

Cacola Furniture International Limited


(IPO booth at Raffles Place. Unlike China Hongcheng, it never showcase its products)

Cacola Furniture International Limited ("Cacola") designs, manufactures and distributes a wide range of modern- style home and office furniture in the PRC. This is an interesting sector to be in right now in China as the 'middle-class' in China start to get more affluent and they want to invest in good apartments and decorate their homes with nice furnitures.

Public offer: 4.5m shares at $0.32
Placement: 114.5m shares
Manager: Boulton Capital Asia
Underwriter and Placement: CIMB



The Company has been growing at >25% annually in top and bottom line for the last 3 years. Based on the Q107 growth over Q106, it is likely that the revenue for this year will likely cross the S$100m and net profit will cross the $20m mark. My forecast is that sales for 2007 will range between $107m to $120m and net profit will range between $18m to $22m (may surprise on the upside). Based on the post-IPO share cap of 345m shares, the EPS will range from 5.2 cents to 6.4 cents.

The peers listed in Singapore includes: HTL (not exactly similar space) trading at 6x historical, Man Wah (more similar) trading at 13x historical and Koda (not exactly similiar) trading at 10x historical. I will give it a fair value of 8x-10x PE conservatively for China Play and that will give Cacola a fair value of between 42 cents to 64 cents based on 2007 EPS estimates. At 42 cents, it represents a upside which is more than 30% from the IPO price.

What may possibly derail the "IPO stag" will be:
(1) Large placement float of 114.5m shares
(2) Lack of support from CIMB and investors post listing (see share price of China Hongcheng today which is below its IPO price)
(3) Sentiments turning sour on the stock market.

Comments

Anonymous said…
Your analysis is right...
We must wonder how to make money from furniture??