Skip to main content

IPO Chilli Ratings

IPO Chilli Ratings
Click to understand how it works

Featured

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

Tritech Group Limited



Tritech Group Limited ("Company") is offering 36m shares at 20 cents per share (30m New shares and 6m Vendor shares) for sale at IPO of which 35m shares will be via placement and 1m shares through the public tranche. The Company is to be listed on Catalist (not sure why it is not going for the mainboard but i believe it is due to a series of litigation suits mentioned on page 141 of the prospectus which obtaining a mainboard clearance will take a much longer time, although it seemed that the Company has all the insurance in place to limit the losses)...and the IPO will close on 19 Aug 2008 at 12pm.

The Company is in the 'construction-related' sector in the ground and structural engineering services. The revenue for FY 2008 is S$31.3m and the net profit is S$7.3m. The NTA post-ipo is 9.17 cents and the EPS (post-ipo and post service agreement) for FY2008 is 3.39 cents and based on the IPO price of 20 cents, it is priced at 5.9x historical. The market cap is S$39.2 million.

The Company will be a tightly held company with 81.63% of its shares held by Tritech International and Tritech International is in turn held by 4 individuals and one company. As mentioned on page 141, there are a series of litigation law suits which investors should be aware of as they may have an impact on the Company (although any significant losses seemed to be covered by the insurers).

While the Company has been very profitable in FY2008, personally, I dislike the construction sector and continue to avoid this sector as it is cyclical in nature and 'difficult' to estimate the future earnings unless we have the visibility of the contracts. Assuming a 20% growth in EPS, the EPS for FY2009 will be 4.068 cents. Based on valuation of 6x, the fair value will be around 24 cents but investors will have to give a discount to this company for its low market cap and liquidity. I will avoid this counter under such negative IPO sentiments and give it a 1-chilli rating.

Comments