Thursday, October 25, 2012

Gaylin Holdings IPO Balloting Results

Balloting Results of the Gaylin Holdings IPO is out as of 24 Oct 2012 and are summarised as follows
  • 110,000,000 shares for public and placement tranche
    • 5,000,000 for public tranche
  • 5.5x oversubcribed overall (reflected in official balloting results statement)
    • 0.997x subscribed for placement tranche shares
    • 100x (because of small public offer amount) over subscribed for the public tranche shares
  • Shares at S$0.35 each
Shares have commenced trading on a "ready" basis at 9am on Thursday, 25 Oct 2012 and have closed at $0.365.




Official announcement document of the Gaylin Holdings IPO is available on the company website here.


On a side note, Dynasty REIT has unexpectedly pulled out of their announced listing citing unfavorable market conditions that are developing. For those of you still in the IPO gunning mode in anticipation for future listings (which I believe is highly likely given the high liquidity phase we are entering into), check out my blog page on "Guide to IPO Investing" to help you navigate around especially if you are a new investor or new to the IPO bidding system of SGX. Help yourself to help yourself!

To also have a feel of the local demand for IPOs, do check out my compiled "IPO SG Statistics" page for a good detailed but yet bite-sized organisation of the statistics.


Also, do bookmark this page // add Healthytrading blog to Twitter // subscribe to RSS feed // subscribe to email feeds to receive the LATEST IPO/market news that will move your money. Why wait, add them now! Links are available all on the right of the page (at the navigation bar).

Monday, October 22, 2012

Initial Pop or Long Term View? - Gaylin IPO

Gaylin Holdings is the 4th IPO to list on the SGX in a space of 2 weeks following Courts, Geo Energy, and Religare. Not a bad week for cash-rich investors seeking the extra investment opportunities in a saturated property market, overpriced REITs soon-to-form-bubble and lack of global growth leading to stagnation in stock prices. Underwriters and company managements seem to be expecting the market to pick up in the final quarter of the year to spur up some more stock demand. The flood of liquidity from US and Europe (all the bond buying activities) and in anticipation of that from China has finally caught up with companies seeking that extra equity to drive growth in this intrepid environment.

Here's a quick summary of the offering. For more information, please refer to the prospectus lodged with SGX here.
  • Established since 1974
    • Expanded to Vietnam in 2001
  • One of the largest Singapore-based multi-disciplinary specialist providers of rigging and lifting solutions to the global offshore Oil & Gas industry
    • Manufacture lifting equipment
    • Ancilliary related services
    • Provision of ship supplies
    • 3 warehouses - 2 in Singapore, 1 in Vietnam
    • 1 fabrication facility in Singapore
    • Sales and distribution network spanning Asia, Oceania, Europe, the Middle East and Africa.
  • Business plans
    • Further expand into Asia
    • Expand Malaysian operations
      • Will be commencing construction on new facilities in Tanjung Langsat in Dec 2012
      • Setting up representative office in KL, Malaysia
  • Figures and numerics
    • $0.35 per share
    • 5,000,000 offer shares for public subscription
    • 110,000,000 new shares
    • S$38.5 million in gross proceeds to be raised
      • S$35.4 million after deducting listing expenses
      • 51.9% expansion of operations in Asia (ie. possible future acquisitions)
      • 5.2% expansion into Malaysia
      • 34.7% working capital
    • 'No formal' dividend policy
      • Intention is to distribute dividends of not less than 30% of net profits for FY2013 and FY2014
        • Net profit after tax is ~$12-13 million (for the last 2 FYs)
        • ~1c/share (based on 410 million shares after offering)
        • ~2.7% dividend yield over offer price of $0.35/share
  • Major shareholders
    • All shareholders stated below have pledged not to attempt to sell any of the post-offering share capital for up to 6 months from listing. This represents 73.1% of the company paid-up share capital.
    • Comfort shipping - 8.4 million shares (paid average 29.8c/share)
    • Amhoist - 8.4 million shares (paid average 29.8c/share)
    • Wee Seng - 6.49 million shares (paid average 30.8c/share)
    • Rhodus - 12.3 million shares (paid average 22.4c/share)
    • Keh Swee - 264.41 million shares 
  • Timeline for offering





Definitely considering this IPO as a hit-and-run IPO for the moment and not as a long term value investor. Reasons are as follows below
  • > 30 years of industry experience with Singapore-based operations represents some form of stability and continuity that the company can bring.
    • However, a quick check with Spring Singapore shows that the company faces strong competition to rise up as a global brand representing the Oil & Gas support services sector in Singapore. [Spring Singapore 2009 report]
    • The article also speaks volume of the intense competition in this saturated business environment although the Singapore brand name helps with overseas collaboration.
  • No 'formal' dividend policy gives me the vibe that the management may be uncertain of the future performance of the company and are unwilling to make any commitment.
  • Low liquidity stock except for the listing time fireworks. Only 26.9% of the shares are tradable in the next 6 months, representing 110 million shares or $38.5 million in value.
On the bright side,
  • I like the company's geographical and business focus. The management probably sees huge energy growth emanating from Asia and is keen to explore the developing demand.
    • LNG was sort of mentioned as a passing remark in the IPO prospectus but I suspect there would be more interest going forward to harness that demand that is developing sure fast in Asia and especially so, Singapore.
      • Coincidentally, Malaysia is a net exporter of LNG
    • Oil & Gas sector is ever-expanding together with energy demands. Let's remind ourselves that Japan is totally eliminating nuclear power and requires yet more oil & gas to sustain its energy needs. China is growing, albeit more slowly this time but Indonesia, Myanmar are up and coming.
  • PE ratio of 8.5x seems reasonable for a growing company
With Dynasty REIT also in the focus this week, I would still be tempted to put my money with Gaylin Holdings for the initial pop at the start of the listing. It is not an easy IPO to get too, given just 5 million shares on offer for a very active IPO market this period.


PS. for a statistical breakdown of all SG-listed IPOs in 2012, do visit "SG IPO Statistics" on this Healthytrading blog. It presents an easy snapshot of all the IPOs at a glance for your analysis and comparisons.

For those of you gunning for the Gaylin Holdings or Dynasty REIT IPOs, check out my blog page on "Guide to IPO Investing" to help you navigate around especially if you are a new investor or new to the IPO bidding system of SGX. Do not waste time; time is ticking away to those offer deadlines!


Also, do bookmark this page // add Healthytrading blog to Twitter // subscribe to RSS feed // subscribe to email feeds to receive the LATEST IPO/market news that will move your money. Why wait, add them now! Links are available all on the right of the page (at the navigation bar).


Friday, October 19, 2012

Geo Energy Resources IPO Balloting Results

Balloting Results of the Geo Energy Resources IPO is out as of 18 Oct 2012 and are summarised as follows
  • 289,264,000 shares for public and placement tranche
    • 3,000,000 for public tranche
  • 2.9x oversubcribed overall (reflected in official balloting results statement)
    • 0.9896x subscribed for placement tranche shares
    • 184x (because of small public offer amount) over subscribed for the public tranche shares
  • Shares at S$0.325 each
Shares will commence trading on a "ready" basis at 9am on Friday, 19 Oct 2012.

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Official announcement document of the Geo Energy Resources IPO is available on SGX here.


On a side note, Dynasty REIT and Gaylin Holdings have subsequently announced their IPO listings that will be due on the SGX mainboard next week. The IPO scene is truly heating up!

For those of you gunning for the upcoming 2 more IPOs, check out my blog page on "Guide to IPO Investing" to help you navigate around especially if you are a new investor or new to the IPO bidding system of SGX. Do not waste time; time is ticking away to those offer deadlines!

To also have a feel of the local demand for IPOs, do check out my compiled "IPO SG Statistics" page for a good detailed but yet bite-sized organisation of the statistics.


Also, do bookmark this page // add Healthytrading blog to Twitter // subscribe to RSS feed // subscribe to email feeds to receive the LATEST IPO/market news that will move your money. Why wait, add them now! Links are available all on the right of the page (at the navigation bar).

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Thursday, October 18, 2012

Religare Health Trust IPO Balloting Results

Results of the Religare Health Trust IPO is out as of 18 Oct 2012 and are summarised as follows
  • 567,455,000 shares for public and placement tranche
    • 12,000,000 for public tranche
  • 2.3x overscribed for placement tranche shares
  • 14.5x over subscribed for the public tranche shares
  • IPO raising with 567.455 million shares at S$0.90 each
Shares will commence trading on a "ready" basis at 2pm on Friday, 19 Oct 2012 (instead of 9am on 22 October as previously stated) [CNA Official]

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Official announcement document of the Religare Health Trust IPO is available on SGX here.


On a side note, Dynasty REIT and Gaylin Holdings have subsequently announced their IPO listings that will be due on the SGX mainboard next week. The IPO scene is truly heating up!

For those of you gunning for the upcoming 2 more IPOs, check out my blog page on "Guide to IPO Investing" to help you navigate around especially if you are a new investor or new to the IPO bidding system of SGX. Do not waste time; time is ticking away to those offer deadlines!

To also have a feel of the local demand for IPOs, do check out my compiled "IPO SG Statistics" page for a good detailed but yet bite-sized organisation of the statistics.


Also, do bookmark this page // add Healthytrading blog to Twitter // subscribe to RSS feed // subscribe to email feeds to receive the LATEST IPO/market news that will move your money. Why wait, add them now! Links are available all on the right of the page (at the navigation bar).

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Wednesday, October 17, 2012

It's the IPO Season - Geo Energy, Religare

What a huge 2 weeks of IPO activities that have taken the market by storm amid all the global growth slowdown gloom! Here is a quick review of some of the IPOs that have been announced and are about to be confirmed.

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  1. Courts Asia
  2. Geo Energy Group
    • S$0.325/share
    • Applications close 17 Oct Noon
    • Check out my article on "To invest in Geo Energy Group IPO?" Fundamental view has not changed and I would be tempted to use my cash for Religare Health Trust listing instead of Geo Energy Group at such times.
    • BTimes Coverage
  3. Religare Health Trust
  4. DeClout (Catalist)
  5. Dynasty REIT
    • To raise $1 billion
    • TodayOnline Coverage
    • Pending confirmation announcement of public tranche offer


For those of you gunning for the Geo Energy Group or Religare Health Trust IPOs, check out my blog page on "Guide to IPO Investing" to help you navigate around especially if you are a new investor or new to the IPO bidding system of SGX. Do not waste time; time is ticking away to those offer deadlines!

To have a feel of the local demand for IPOs, do check out my compiled "IPO SG Statistics" page for a good detailed but yet bite-sized organisation of the statistics.


Also, do bookmark this page // add Healthytrading blog to Twitter // subscribe to RSS feed // subscribe to email feeds to receive the LATEST IPO/market news that will move your money. Why wait, add them now! Links are available all on the right of the page (at the navigation bar).


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Saturday, October 13, 2012

Courts IPO Balloting Results

Results of the Courts Asia IPO is out as of 8pm 12 Oct 2012 and are summarised as follows
  • 85,795,000 shares for public and placement tranche
  • 24.4x over subscribed for the public tranche shares
  • 77,920,000 shares for cornerstone investors
    • JF Asset Management
    • New Silk Road Investment
    • Target Asset Management
    • Value Partners
  • IPO raising of $137.1million
Shares will commence trading on a "ready" basis at 9am on Monday, 15 Oct 2012.



Complete results of the Courts Asia IPO is out as of 8pm 12 Oct 2012 and is available on SGX here.

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Thursday, October 11, 2012

To Invest in Geo Energy Group?

Geo Energy Group is the 13th publicly offered IPO to list on the SGX this year, 2012. Not a bad week for cash-rich investors seeking the extra investment opportunities in a saturated property market, overpriced REITs soon-to-form-bubble and lack of global growth leading to stagnation in stock prices. It is the 2nd to announce its listing this week apart from the Courts IPO. Looks like the underwriters and company management are expecting the market to pick up in the final quarter of the year to spur up some more stock demand.

Anyway, here's a quick summary of the offering. For more information, please refer to the prospectus lodged with SGX here.
  • Coal mining group with operations that started in 2008
    • Operations are primarily located in Kalimantan, Indonesia
    • Mine operator
    • Mine owner cum operator
    • Mine contractor providing services to third party mine owners
  • Figures and numerics
    • $0.325 per share
    • 3,000,000 offer shares for public subscription
    • 289,264,000 invitation shares
    • S$94.0 million in gross proceeds to be raised
      • S$77.8 million after deducting listing expenses
      • 41.9% general working capital
      • 39.3% to acquire mining equipment and machinery
      • 15.7% business expansion including acquisitions, joint ventures and/or strategic alliances
      • 3.1% construction of jetty and barge loading facilities
    • No dividend policy
  • Timeline for offering


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Have yet to digest the prospectus completely but here are my fleeting thoughts on the offering as it is portrayed on first impressions.
  • Relatively new company with an eye on consolidating operations with what they currently have but not too overly ambitious with expansion plans.
  • No dividend policy makes it a high risk investment in the long run given that share price fluctuations will largely be dependent on its profitability.
  • However attractive the prospectus makes the coal business look to be, it does not seem to have a solution to China's infrastructural development slowdown. The rest of the world is also in malaise and fiscal debts are being tackled internationally. It is difficult to envisage the same heydays for coal at least for 1 year down the road before the financial stimulus does find its way to prop up China and lead emerging markets and Europe out of the abyss by 2014.
  • Expect highly volatile earnings. Competition is very strong in the mining industry and profits are largely dependent on coal prices.
  • PE ratio seems a little on the high side 
    • Sakari Resources, a mine operator with presence in Indonesia, trades with a 11.7x P/E TTM (Source: Bloomberg Businessweek)
    • Energy sector in Asia has a 5.5x P/E TTM for 168 companies (Source: Bloomberg Businessweek)
    • Singapore's stock market trades at a ~9x PE (Source: Mystockinvesting.com)
In conclusion, with both Courts and Geo Energy Group on offer today, I would still be more tempted to head for Courts with a local presence and feel where I can better gauge its financial health and business performance. It has been a stable player with room for expansion in Malaysia, and coincidentally, Indonesia, as their next destination. Retail growth potential seems far greater than that of coal in Indonesia too.

PS. for a statistical breakdown of all SG-listed IPOs in 2012, do visit "SG IPO Statistics" on this Healthytrading blog. It presents an easy snapshot of all the IPOs at a glance for your analysis and comparisons.

Tuesday, October 2, 2012

Good News for IPO Investor Community

SGX has just released a statement today on plans to allow more retail investors to participate in IPOs. That means raising the allotment available for the public tranche and hopefully, increase liquidity of IPO stocks early on (since IPOs typically have a placement and cornerstone tranche offer that already stipulates certain embargo on selling within a specific period) and more importantly to allow a greater chance of being allocated successfully.

Proposal details in summary (http://bizdaily.com.sg/newsite/sgx-proposes-to-raise-ipo-shares-available-for-retail-investors/)

  • Minimum of 5% of total underwritten shares to be available under the public offering tranche
  • Clawback mechanism to allow shares to be transferred between public and placement tranches to better cater to demand from either side.
Public are welcome to share views and feedback to SGX on the proposed changes.

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Monday, October 1, 2012

Upcoming Dates that may Move Your Money - Weekly Update

Last week recap
The market seemed to have fully digested the impact of QE3 on the economy. After continued euphoria from the week before, stock prices staged a short-lived Monday-to-Tuesday rally before retracing lower for the rest of the week.
  • STI surged to 3075 in early week before tumbling to 3040 in mid week. Closed at 3060 by friday.
  • Hang Seng index continued its strong rebound with QE3 funds expected to give boost to its property prices and financial sector, touching 20850 on Friday.
  • Dow opened the week strongly to hit 13610 by Tuesday before turning down on Wednesday and remaining flat until Friday at around 13440.
US stock exchanges suffered on Friday, closing much lower on the back of fears that the US economy is stalling despite a slightly better than expected Spain capital requirement stress test of banks.


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Week ahead
  • Monday
    • China, Italy, France, Germany, UK - Sept Manufacturing PMI
    • Euro-zone - Sept Unemployment Rate
    • Ben Bernanke speech at the Economic Club of Indiana in Indianapolis
  • Tuesday
    • SG - Sept PMI
    • South Korea - Sept Manufacturing PMI
  • Wednesday
    • Nil
  • Thursday
    • US - Aug Factory Orders
    • US - Sept Initial Jobless Claims
    • US - Sept Continuing Claims
    • UK, Europe - Interest Rates Announcements
  • Friday
    • US - Minutes of FOMC Meeting
    • US - Sept Change in Nonfarm Payrolls
    • US - Sept Unemployment Rate
    • Germany - Aug Factory Orders

Source: SGX MyGateway Economic Calendar
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