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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
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Wee Hur Holdings Ltd.


(IPO Booth at Raffles Place)

Wee Hur Holdings Ltd specialise in construction projects, ranging from new construction, additions and alterations of existing buildings. Bascially we can use one phrase to describe this company - A "Brave" Construction Firm.

2,091,000 Public Offer shares at $0.25
81,558,000 Placement shares at $0.25
Joint Managers: SBI E2-Capital and Phillip Capital
Closing date: 28 Jan 2008 12pm (they should have chosen 8.08 am as the closing time :P)

Once again, i use the word "brave". I definitely hope they are not trying to be the first IPO to be undersubcribed. Basically i have nothing good to say about this industry, so lets start with what i dont like about this sector/company:

(1) Cyclical industry. The earnings fluctuate with the property cycle. If you remember just a few years back, the construction industry is in the doldrums and all the construction firms almost 'died'. If not for the IR and the current property boom, i believe Wee Hur will not have this 'window' to list.

(2) Limited growth. How exciting can this sector be with competitive landscape and rising construction raw materials.

(3) Owners are selling out. Under such market sentiments, even the owners are cashing out by selling vendor shares. I am really surprised the underwriters agreed to it!

(4) Small market cap. With a market cap of only $80.3m, this is one of the smallest construction firm around when you compare to the likes of Chip Eng Seng, Lian Beng and Koh Bros.

(5) Family Biz. As in most construction firm, it is usually a very family oriented business. This may prevent some 'professionals' from joining the firm.

Fair Value:

Lets take a look at the track record of Wee Hur:
FY2004 Revenue: $48.1m, Net Profit: $1.65m
FY 2005 Revenue: $45.8m, Net Profit: $1.57m
FY 2006 Revenue: $80.6m, Net Profit: $2.757m
1H 2007 Revenue: $45.6m, Net Profit: $5.74m

Assuming EPS for 2007 is 1H07 x 2 = 3.6 cents, based on the IPO price of 25 cents, it is trading at a historical PE of 6.9x, which in my view, is reasonably priced. Assuming a EPS growth of 20% for FY 2008, the EPS will be 4.32 cents. Assuming a PE value of 8x, the 'fair value' will be around 34 cents.
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