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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

Otto Marine Limited




Finally i have an IPO to write about... the last IPO China Kunda was more than one month ago on Oct 9, 2008... the IPO market has been dead for a long while!

Otto Marine Limited is offering 235,295,000 shares at $0.51 per share (206.045m New shares and 29.25m vendor shares). The Company is an offshore maring group engaged in shipbuilding, ship repair and conversion and ship chartering. The revenue for FY2007 is S$314 million and net profit was S$41.9 million. The IPO will close on 26 Nov 2008 at 12pm and list on 28 Nov 2008. 3 cornerstone investors will subscribe for 146.234m shares (or 62% of the offering). Only 1m shares will be offered to the public, which make this public tranche "for show" as the underwriters have no choice since the public sentiments for IPO is really weak at this juncture. It is really amazing that the IPO can go through since this is really a big float at S$120m raised and it is a good sign that the IPO is able to attract key cornerstone investors. It is a vote of confidence by institutional investors to this Company. However, do note that there is no moratorium on the cornerstone investors.

At 51 Singapore cents, the IPO is priced at a historical PE of 14.36 (EPS of 3.55 cents for FY2007 based on fully diluted basis using the enlarged share cap). The first 5 months EPS is 2.77 cents (fully diluted basis). Assuming full year EPS is 6.65 Singapore cents for FY2008, the IPO is priced at 7.67x PE.

Assuming a 25% growth in FY2009, the EPS will grow to 8.3 Singapore cents. Most of its peers are also trading at single digit PEs and I would say the issue is fairly priced for the IPO. Assuming a PE fair value of 5-7x PE for FY2009, the fair value will be between 42 cents to 58 cents. The presence of institutional investors like Standard Chartered Private Equity does bode well for this Company as they typically have a longer investment horizon of 3 to5 years.

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