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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

Japan Foods Holding Limited



Japan Foods Holdings Limited is issuing 13.5m New Placement Shares at $0.20 each. The post share capital will be 88.17m shares and that translate into a market cap of $17.6m (ultra small cap). It is principally engaged in the operation of restaurants under various brands in Singapore and Malaysia. The offer will close on 19 Feb 2009 at 12pm.

For the FY2008, its revenue was S$26.8m and its profit after tax was S$2.85m. Its net margin was 10.6% for FY2008. Assuming the service agreement is in place and based on the enlarged share capital, the EPS for FY2008 will be 2.83 cents and that translate into a historical listing PE of 7x.

"Comparative" Companies listed on SGX

The closer comparable companies listed on SGX will be Apex Pal (operator of Sakae Sushi chain), Breadtalk, Food Junction, Old Chang Kee, Select, Soup Restaurant and Thai Village. They are trading at PE multiples ranging from 6 to 10x. In this aspect, the IPO is fairly priced with little upside and possibly more downside if there is little investors' interest for companies listed on Catalist.

I am not sure why a "Frachisee" is allowed to list as there is no guarantee that the Japan Foods will continue to be given the Franchise status. It is like asking Macdonald Singapore to list its operations on SGX. Anyway, avoid this IPO. There are better companies to put your $ in.

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