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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

Old Chang Kee Ltd


(Old Change Kee Store at Golden Shoe)

This is the first IPO stock on the Singapore stock exchange to be launched in year 2008 and i must say the Company is either very brave to have its IPO launched or very desparate for cash.
Westcomb did not set up any booth to distribute the prospectus and i believe that is financially wise since the public tranche is only 1m shares and this is really a 'microcap' company.

Share price - $0.20
No. of shares - 25m (24m placement, 1m public)
Issue Manager - Westcomb
Closing Date - 14 Jan 2008

With the post-ipo market cap of only $18.7m, this is really a micro cap company. My comments is that unless you are in love with Old Chang Kee curry puff and believes that the puff'o will dominate the world market one day like McDonalds, you avoid this stock. The financials for 2007 1st half actually showing the Old Chang Kee is 'stagnating' with no growth. Put it this way, the raw material prices are increasing but can OCK pass on the costs to consumers?

Assuming i give the most bullish forecast where 2007 EPS (post-IPO) is 3.5 cents, the Company is trading at 5.7x PE. I think that is already fairly valued for a company that is currently not showing any growth. With low barriers to entry and difficulty in scaling up this business, my suggestion is to avoid this counter and give it a 1 chilli rating. Perhaps this company may because more valuable as a 'shell company' for acquisition eventually (in a reverse takeover).



Comments

hongjun said…
I have stopped patronizing Old Chang Kee after they raised curry puff price to $1.10.

A curry puff for $1.10! It's a luxury. Not worth the money.

hongjun
Mr. IPO said…
Hongjun, some say the standard has dropped and no longer taste the 'same'. You have tip top and A1 waiting to fight the curry puff war here...
hongjun said…
I agree with you on their drop in standard. I can easily get a more delicious curry puff from AMK Central and it cost 10 cents lesser.

Cheers
hongjun
Anonymous said…
Guess what happened to OCK's share price 5 years later... :D
Mr. IPO said…
Haha. I never follow. U made a killing ?