Kim Heng IPO Ballot Results

Previous post: [OUE C-REIT IPO]

Kim Heng Offshore & Marine Holdings Ballot Results

Shares will start trading at 9am on 22 Jan 2014.
Results of the IPO as follow

• 5.8x oversubscribed
• 280x oversubscribed in offer (public) tranche
• 1x subscription for placement shares

Comments on latest OUE C-REIT IPO

We have a BUY call on the latest OUE C-REIT IPO with an eye for the long run (horizon). Expect volatility in prices as US tapering exercise goes into full swing and as OUE C-REIT begins negotiating renewal of rents. Read full article on healthtrading here.

IF YOU ARE UNDECIDED, SG IPO Statistics page will show you how the IPO demand and supply has been from 2012 onwards.

IF YOU WANT TO APPLY, do check out Guide to IPO Investing. The deadline is Noon 23 Jan! Hurry.

Lastly, do follow HealthyTrading on Twitter! We are live on Twitter! Follow to get updated financial news with a Singapore perspective for your investment and trading ideas.

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OUE Commercial REIT IPO

Previous post: [6 Week Temporary Debt Limit Increase]

OUE Commercial REIT IPO

Summary

• S$0.80/share offer price
• 866 million shares to be created
• 433 million: OUE
• 225 million: cornerstone investors - Wealthy Foundation Holdings, Mr Gordon Tang, Mdm Chen Huaidan, Mr Yang Dehe and RHB Asset Management Sdn Bhd
• 151.75 million: institutions
• 56.25 million: retail investors

• 6.8% 2014 yield forecast, 6.89% 2015 yield forecast (after income support)
• 23.3% discount to NAV of $1.043/share
• 41.2% gearing ratio
• Ba1 (Moody's) rating
• Prospectus on MAS website click here

Timeline

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Commentary

• Operating cashflow (based on FY2012) can provide up to ~6.5% yield without income support. For the first two years, if income support kicks in, payout will still be < 100% of cashflow. Else, expect OUE C-REIT to be paying out of their own pocket until rental yields improve
• Average P/B value of direct competitors (CapitaCommercial Trust, Frasers Commercial Trust, Keppel REIT, Suntec REIT) is 0.84 based on 14 Jan 2014 OCBC S-REITs tracker. This represents a rough theoretical upside of 10% for current OUE C-REIT P/B of 0.767.
• OUE Bayfront is a relatively new property with rental yields yet to stabilise. Income from it forms almost 70% of OUE C-REIT portfolio so expect some volatility in that sense. Singapore commercial rentals in the CBD has been improving so rental yields can have room to improve. Leases for Lippo Plaza are mostly due for renewal soon so there is some case for upward improvement in rental yields subject to stability of the property market in China
• OUE Downtown 2, LA US Bank Tower, One Raffles Place could also be injected into the trust. OUE C-REIT, upon listing, will have a market capitalization of around S$700 million - the smallest of C-REITs on the SGX (next smallest Frasers Commercial Trust has a market cap of S$840 million). Chances are OUE is warming the market to its properties but still unsure of the true demand given the start of US tapering exercise. Slowly, but surely, they will want to inject these properties into the C-REIT to unlock their value.

Overall - BUY OUE C-REIT only for the long run. Expect volatility in prices as US tapering exercise goes into full swing and as OUE C-REIT begins negotiating renewal of rents.

IF YOU ARE UNDECIDED, SG IPO Statistics page will show you how the IPO demand and supply has been from 2012 onwards.

IF YOU WANT TO APPLY, do check out Guide to IPO Investing. The deadline is Noon 23 Jan! Hurry.

Lastly, do follow HealthyTrading on Twitter! We are live on Twitter! Follow to get updated financial news with a Singapore perspective for your investment and trading ideas.

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Twice Lucky in a Month? - Asian Pay Television Trust IPO

Previous post: [Upcoming IPOs - Croesus Retail Trust & Asian Pay Television Trust]

Introduction to Asian Pay Television Trust IPO
Asian Pay Television Trust will list in the shadows of Croesus Retail Trust that went live on 10 May to a tremendous investor appetite for the high-yielding IPO. So, will it be a repeat of the stellar performance of Croesus Retail Trust?

Key figures

1. S$0.92 to S$1.00 per share indicative price range
2. 7.29 to 8.25% dividend yield (2013-2014) on a semi-annual basis (30 June and 31 Dec) based on the highest offer price of S$1.00
3. S$1.4 billion expected to be raised
4. 9 cornerstone investors including Quantum Vehicle, the investing fund controlled by the legendary George Soros

[Link to lodged prospectus @ MAS here.]

If you are a new IPO investor, do check out my blog page on Guide to IPO Investing.
Even if you are a seasoned IPO investor, you may wish to check out 2012 and 2013 IPO listing performance at SG IPO Statistics for more insights to optimise your balloting chances!

Timetable
Prepare to start applications on 17 May till 27 May. Listing date targeted 29 May 2pm.

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Analysis of the IPO
Details are still tentative and dependent on the decided indicative price as the book building process is still underway so here are snippets of what I have read/heard/seen and my initial thoughts. More to follow when the figures are finally decided.

1. High yield of 7-8% for 2013 and 2014
1. [The good] This yield, similar to Croesus Retail Trust's yield range, is going to appeal to yield hunters. The performance of the Croesus Retail Trust IPO serves to remind many of us, purported contrarians, that the yield-hunt is yet to be over and there is still much more yield compression that we will see. The next high-yield equity IPO that listed before Croesus Retail Trust, Mapletree Greater China Commercial REIT, listed in March this year has already appreciated by 20% from its listing price and 8% from its first day close. More statistics here.
2. [The good] A clear distribution policy where the trust will distribute 100% of its distributable free cash flows on a semi-annual basis.
3. [The bad] that seems slightly more risky than initially thought (as with the Singaporean mentality, we favour questioning items that seem too good to be true; being critical is a trait though)
2. High cornerstone and institutional take-up S$451 million of the IPO, almost 32%.
1. [The good] There will be adequate price level support for the listing period
1. <1% of total units (25 million units) offered in the Public Offer. 
2. 66% placement tranche
3. ~32% of total units will be held by cornerstone investors
2. [The bad] If you had complained about your Croesus Retail Trust IPO balloting results, this public offer would have an even smaller chance of a successful ballot.
3. Business trust concept
1. [The good] Business trusts on the SGX tend to operate with a slightly higher forward-looking yield so it can be said that there is still further upside to their prices in this chase for yields. 
2. [The bad] Truth is, business trusts listed in Singapore tend to be less favoured by investors as compared to REITs basically of their operating structure. In short, business trusts are more complicated in their value proposition. REITs also pay less taxes on their income in Singapore.
3. [The good] Asian Pay Television Trust yield of ~7-8% (based on S$1 offer price) puts it as the 2nd highest forward-looking yield business trust on the SGX, where the next closest is Croesus Retail Trust (6.5% at S$1.145), K-Green trust and Hutchinson Port Holdings. It is only surpassed by Religare Health Trust of 8.4%.
4. Taiwan infrastructure play that is also the only one listed on the SGX
1. [The good] Ideal for retail investors seeking exposure to Taiwan and cable television market. The cable television market in Taiwan is the 5th largest in Asia by revenue.
2. [The good] It has good comparative advantage in the pay-TV business as it is one of the 3 largest operators in Taiwan. 

Market Outlook
Just a quick highlight, Croesus Retail Trust closed with a first day gain of 23% above offer price. This just served to highlight the tremendous liquidity that the Singapore financial market has been enjoying and that high-yielding equity are still hot in demand despite the yields reflecting their relative risk. Contrary to some belief that the yield-chase is over in 2013 and beyond, the economic story has yet to brighten and we can see that yield compression is still taking place actively in the markets of today.
More IPO statistics here.


Conclusion of the IPO
In essence, I am sensing a repeat of the stellar performance of the Croesus Retail Trust IPO. Maybe slightly more muted given that Croesus Retail Trust has already satisfied some demand but definitely not too far off. In fact, there are huge similarities to be drawn between these IPOs of 2 business trusts. They are similarly operated overseas, so Singapore will not be able to see their assets being put to work first hand. Like Croesus Retail Trust, which had a poor gearing ratio above many other concerns, this trust is not without them. But as it seems, the market is intent on ignoring these risks in search of high-yielding equities. This trust has a huge offering, surpassing the Mapletree Greater China Commercial Trust of S$1.3 billion, which will be a truer test of the capital market in Singapore and the clamor for yield even in 2013. For now, let's wait for the price to be finalised before making a decision based on the institutional demand.

All quoted figures in Point 3 are derived from the OCBC Investment Research S-REITs Tracker Compilation dated 13 April 2013. As it is an uncirculated copy, I did not upload it; I am sure you can get it from your broker or more updated data from Bloomberg terminals.

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Croesus Retail Trust IPO Ballot Results

Previous post: [Update to Croesus Retail Trust IPO]

Ballot Results of the Croesus Retail Trust IPO are out as of 9 May 2013 and can summarised as follow

• 229 million shares for placement and public tranche
• 207.6 million shares for placement tranche
• 21.5 million shares for public tranche
• 22.4x oversubcribed in total
• 48.8x subscribed for placement tranche shares
• 19.7x over subscribed for the public tranche shares
• Shares at S$0.93 each
• Expect 8% yield for the first year; Expect 8.1% yield for the next.

Shares will commence trading on a "ready" basis at 2pm on Friday, 10 May 2013!

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The big question is how will it fair on debut and thereafter?

My Commentary on Croesus Retail Trust IPO dated 5 May 2013
Blog post here - Wrong Gears for the Wrong Crowd? - Croesus Retail Trust

Current IPO market conditions
Here's a quick review of the recently listed IPOs and their performances. More data for the full 2012 to 2013 here at SG IPO Statistics page.



In fact, only Logistics Holdings IPO has taken a beating, closing below IPO offer and first day last done prices (-9% and -21% respectively). The other notable counter is Geo Energy Group that is a +32% from IPO offer price but -1% from first day last done price.

Statistically, it means that out of the last 12 IPOs, even if you bought at first day close (the irrational exuberance phase, or in layman 'the pop') you would have made a profit of at least 2% (GDS Global IPO)! If you had obtained the IPO on offer price, you could have made up to 70% by just holding the stock from offer price to date (Gaylin Holdings). In addition, the figures quoted here are unadjusted for dividends that had been paid out by these counters along the year.

Current REITs/Trusts IPO market conditions

If you refer to the table above, the yellow highlighted text pretty much sums up the whole IPO + REITs/Trusts story. Any of these 4 REITs/Trusts would have yielded a good +10% on capital whichever way you look at it, plus more from the dividends that they have been paying out. 

Year 2012/13 IPO Demand Statistics
For the more demanding investor, to have a greater feel of the local demand for IPOs, do check out my compiled "IPO SG Statistics" page for more details!

Also, do bookmark this page // add Healthytrading blog to Twitter // subscribe to RSS feed // subscribe to email feeds to receive latest market news that will move your money. 

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Update to Croesus Retail Trust IPO

Previous post: [Wrong Gears for the Wrong Crowd? - Croesus Retail Trust]

Applications for Croesus Retail Trust IPO will close by Noon 8 May. If you have yet to apply, do so ASAP.

For the undecided, you may wish to check out my review of the IPO here - Wrong Gears for the Wrong Crowd? - Croesus Retail Trust

For the decided who has yet to execute, SG IPO Statistics page will help you make the decision to how many lots to apply for to maximise your cash and not over extend yourself during this application-before-funds-return phase. Of course, it is heartening to know that by 10 May results will be out and excess money will be returned.

My view is that applying units worth ~$10,000 is typically the most cash-effective for a small retail investor with other cash commitments to handle. In other words, I am advocating applying for 11 lots as an optimised decision for this IPO (please still base your decision to apply on your investment/trading strategy and not on my advice).

Statistically, for REITs/Trusts priced at 80-90c, one can apply 10-15 lots with $10,000. And in that range, you usually get 3-4 lots if successful. Examples are Mapletree Greater China Commercial Trust (3 lots with 11 lots applied), Religare (4 with 11), Far East Hospitality Trust (3 with 11) and Ascendas Hospitality Trust (3 with 11), all calculated with $10,000 cash for application. This uses about 25% of the $10,000. The number hardly changes with $15,000 used, and only varies after $20,000 cash and more. Of course, if you are cash-rich and these 2 days of not seeing your cash is of no sweat, then it does not matter that you are using say $100,000 to stag on obtaining like 10 lots (10% of cash utilised).

For the decided who does not know how to apply, do check out Guide to IPO Investing. The deadline is Noon 8 May! Hurry.

Lastly, do follow HealthyTrading on Twitter! We are live on Twitter! Follow to get updated financial news with a Singapore perspective for your investment and trading ideas.

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Wrong Gears for the Wrong Crowd? - Croesus Retail Trust

Previous post: [Upcoming IPOs - Croesus Retail Trust & Asian Pay Television Trust]

So, all the hype of the Croesus Retail Trust IPO has started on the online sphere with several blogs catching up on this big IPO that will be the 2nd largest after Mapletree Greater China Commercial Trust in March this year. For a start, the timeline for this IPO seems quite tight and listing day is on 10 May.
If you are a new IPO investor, do check out my blog page on Guide to IPO Investing.
Even if you are a seasoned IPO investor, you may wish to check out 2012 and 2013 IPO listing performance at SG IPO Statistics.

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Anyway, so here is a comprehensive summary that I hope to have compiled from reading all the various online literature (that you will already have come to realise hinge on the same old points) and some additional points from my analysis of this IPO.

1. High yield of 8-8.1%
1. [The good] is very good given the risk adverse outlook still persisting in the course of the year plus yield hunting has already driven many REITs and business trusts to yield compressions (~5-6% annual yield down from 10% in height of 2008). Mapletree Greater China Commercial REIT that listed in March this year has already appreciated by 20% from its listing price and 8% from its first day close. More statistics here.
2. [The good] that Japan had unleashed a torrent of cash from its stimulus that should flow down to the individual retail customers and promote retail shopping in the coming years.
3. [The bad] that seems slightly distasteful (as with the Singaporean mentality, we favour questioning items that seem too good to be true; being critical is a trait though)
• that this yield does not seem sustainable given the outlook for yen and that the trust has to pay out in SGD. That means that there could be a possibility of digging into cash stockpile to pay their promised dividends on top of the distributable income.
2. Gearing ratio of 47.5%
1. [The bad] Well, nobody likes a trust with a high debt to assets ratio. Period. 
2. [The good] Funny thing is, Mapletree Greater China Commercal REIT has a debt/asset ratio of 43%. Same with Keppel REIT.
3. High cornerstone and institutional take-up out of the total 390 million units.
1. [The good] There will be adequate price level support for the listing period
1. Only 5% of total underwrited units (21.5 million units) offered in the Public Offer. 
2. 38.5% of total units (163 million) are held by cornerstone investors
4. Business trust concept
1. [The good] Business trusts on the SGX tend to operate with a slightly higher forward-looking yield so it can be said that there is still further upside to their prices in this chase for yields. 
2. [The bad] Truth is, business trusts listed in Singapore tend to be less favoured by investors as compared to REITs basically of their operating structure. In short, business trusts are more complicated in their value proposition. REITs also pay less taxes on their income in Singapore.
3. [The good] Croesus yield of ~8% puts it as the 2nd highest forward-looking yield business trust on the SGX, where the next closest is K-Green trust and Hutchinson Port Holdings. It is only surpassed by Religare Health Trust of 8.4%.
5. Pure Japan retail property play that is also the only one listed on the SGX
1. [The good] Ideal for retail investors seeking exposure to Japan and its recent stimulus package.
2. [The bad] Saizen REIT, a Japan focused REIT, debuted in 2007 at S$1.00 and it has since depreciated until S$0.20 on Friday's close. Perhaps, some of its decline was due to the deflationary pressures in Japan since 2007 while some of which may just simply be due to lack of investors interest in Singapore.

Well, so my conclusion? Basically, I see this IPO trust as a good investment for the aggressive investor seeking to make a good bet on Japan while taking on the risks pertaining to business trusts in general. This is a good opportunity for an such minded investor to also play on yield compression in time to come as a result of yield hunting. It could also be a good stock for a quick buck on listing.
However, I would gravely advise against keeping the stock for longer periods of time - the signs of an uptick in interest rates is getting ever closer from the US. Once stimulus ends and interest rates tick up, there goes the yield hunting story and we may see a collapse in the inflated REITs/Trusts regime.
For the conservative investor, I would suggest that your money is better placed elsewhere in this already-inflated sector. Croesus Retail Trust is another business trust seeking to ride this bandwagon a little too late.

All quoted figures in Point 2 and 4 are derived from the OCBC Investment Research S-REITs Tracker Compilation dated 13 April 2013. As it is an uncirculated copy, I did not upload it; I am sure you can get it from your broker or more updated data from Bloomberg terminals.

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Upcoming IPOs - Croesus Retail Trust & Asian Pay Television Trust

2 new trusts look set to be listed in Singapore in the coming weeks - Croesus Retail Trust and Asian Pay Television Trust. These IPOs come on the back of a very successful Mapletree Greater China Commercial Trust that was listed on 7 March on the SGX Mainboard. They will become the 3rd and 4th Mainboard new members for 2013. Asian Pay Television will become the 2nd largest IPO of the year following MGCCT and is seeking to raise S$1.4billion in this huge equity offering.

Here's a fast and quick breakdown to what you need to know to catch onto the IPO bandwagon in the coming weeks.

1. Croesus Retail Trust
• S$372 million capital to be raised
• 200 million to 250 million share units to be offered
• Indicative price of S$0.93/unit
• 8% yield in first year ending June 2013, 8.1% in subsequent
• 4 x Japanese retail malls in portfolio
• 11 cornerstone investors to subscribe to 164 million units (at least 65% of offered equity)
• Backed by Marubeni and Daiwa House Industry
• Expected public offer 3 May
2. Asian Pay Television Trust
• S$1.4 billion capital to be raised
• 8.25 - 9% yield for 2014
• It is an investment vehicle for Taiwan Broadband Communication, a pay-TV operator
• 8 cornerstone investors secured
• Expected public offer by end May

On the sidelines, it is also definitely an exciting period to come with the rumour that OUE is planning to spin-off its hospitality assets in Singapore for US$800million. That's a total of 3 pretty decent-sized listing up for grabs on the Singapore capital markets in a short period of time. Definitely looking forward to this period with excitement!

Anyway for newcomers to this IPO scene in Singapore, I suggest you take a look at the how this IPO application process works here. It is a short write-up that I compiled to ease the IPO process and clarify doubts. 

Even if you are a seasoned-pro, there is another page on "SG IPO Statistics" that you may want to check out. It details 2012 to 2013 IPOs and their performance on first day launch as well as up to date. 

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Mapletree Greater China Commercial Trust IPO Ballot Results

Previous post: [Largest IPO in 2 Years Goes Live on 7 March - Mapletree Greater China Commercial Trust]

Balloting Results of the Mapletree Greater China Commerical Trust (MGCCT) IPO are out as of 6 March 2013 and can summarised as follow

• 2,662 billion shares underwritten for listing
• 776.6 million shares for public and placement tranche
• 511.3 million shares for placement tranche
• 215 + 50(reserved units that will be released) million shares for public tranche
• 29.5x oversubcribed in total
• 38.1x subscribed for placement tranche shares
• 8.9x over subscribed for the public tranche shares
• Shares at S$0.93 each
• Expected 5.6% yield for the year ending March 2014; Expected 6.1% yield for the year ending March 2015.

Shares will commence trading on a "ready" basis at 2pm on Thursday, 7 March 2013. Total of 2.66 billion shares listing tomorrow. Official SGX announcement here.

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

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Tomorrow is listing day for this mammoth trust that has really ignited the IPO demand in the SGX. The biggest question that we wish to know is how will it fair?

Current REIT market conditions
REITs are clearly the outright winning category of 2012 as investors flocked to yield havens, resulting in a yield compression that we see today. Even so, REITs have still enjoyed considerable upside to the start of 2013. Mapletree brand name REITs have also done well in the current market conditions, surging even further in the last 2 days upon the announcement of listing of this REIT.

• Mapletree Commercial (listed 2011) - $1.445 15 Feb closing price compared to IPO offer of $0.88
• Mapletree Industrial (listed 2010) - $1.390 15 Feb closing price compared to IPO offer of $0.93
• Mapletree Logistics (listed 2005) - $1.240 15 Feb closing price compared to IPO offer of $0.68

Healthytrading Commentary on MGCCT IPO dated 27 Feb 2013
Blog post here - "Largest IPO in 2 Years Goes Live on 7 March - Mapletree Greater China Commercial Trust"

Year 2012 IPO Demand Statistics
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 latest market news that will move your money. 

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Largest IPO in 2 Years Goes Live on 7 March - Mapletree Greater China Commercial Trust

Previous post: [Gloomy Days Ahead for Gold and SPDR Gold Shares]

Largest IPO in 2 Years Goes Live on 7 March

And so, just a quick update about the Mapletree Greater China Commercial Trust that has reignited the attention onto the SG IPO scene.

• S$1.68 billion to be raised in largest REIT IPO
• Last year SGX raised a total of S$4.5 billion which was somewhat a dampener compared to the $9.4 billion raised in 2011. 
• Offer is confirmed to be S$0.93/share
• Highest price of the previously indicated indicative price range of S$0.88 to S$0.93
• Retail offer shares ballot application start on Feb 28
• (for green investors/IPO-applicants, do check out the "Guide to IPO Investing" on this blog regarding the SG IPO application procedures)
• (do also check out "SG IPO Statistics" on this blog for a statistical breakdown of IPOs since 2012)
• Listing date March 7
• Cornerstone investors
• Temasek Holdings
• Morgan Stanley
• Norges Bank Investment Management
• AIA Group subsidiaries
• CBRE Group
• Henderson Global Investors

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Quick Conclusion

As mentioned before, the upper pricing of this IPO is vastly within expectations given the wide search for yield even in this period. With such a brand name and big boys backing this IPO, it is also not surprising that the institutional demand ensured that the IPO be priced at the higher end of the spectrum. 

What this means for us investors is 

• the general assurance of a good fundamentally strong stock. take general with a pinch of salt after what ratings agencies did to our financial system leading to the sub-prime meltdown.
• while knowing that we, as retail investors, are getting it at a much higher premium than did the first cornerstone investors and even the institutions at the placement tranche

All in all, it should impress that if you are fine with the extra premium through the IPO, then this IPO has few fundamental reasons to be avoided. If not, you may want to observe its market equilibrium first before deciding to buy in. My feel is that it is not too late.

I am also skeptically wondering why the IPO is still going ahead at such a suddenly volatile period for the markets. Just my thoughts.

Anyway, I have previously written a more elaborate analysis of the MCGCT IPO that you can find here. Do read it before you make your decision!

Happy and healthy trading people.

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Largest IPO in 2 Years - Mapletree Greater China Commercial Trust

First of many IPOs this year we hope. After a couple of months without a large IPO, the IPO market in Singapore looks set to heat up again with the proposed listing of Mapletree Investment's Mapletree Greater China Commercial Trust. In fact, it is the largest IPO in 2 years.


Summary of offering

• IPO to raise up to S$1.68 billion to purchase 2 China-based commercial property assets from Mapletree Investments
• The biggest IPO of 2013 and the biggest trust IPO since Hutchinson Port Holdings Trust that raised US$5.5 billion in 2011
• Assets are Greater China-based
• Beijing Gateway Plaza
• Hong Kong Festival Walk
• Strong brand name in Singapore with experience in office, logistics, industrial, residential and retail properties
• 45 assets in Singapore
• 20 assets in China
• 9 assets in Hong Kong
• 32 assets in Japan, India, South Korea, Malaysia and Vietnam
• 23 commercial-linked properties
• Figures and numerics
• raising up to S$1.68 billion 
• indicative price range of S$0.88-S$0.93
• Use of proceeds
• No exact break-down so far but cash raised will be used to buy the 2 properties from Mapletree Investments.
• Dividend policy
• Semi-annual
• 5.6-6% for the first year
• 6.1-6.5% for the second year
• 100% of distributable income until March 2015. At least 90% of disctributable income thereafter.
• Cornerstone shareholders
• Temasek Holdings - 851.7-931.6 million shares
• 953.5 million shares to be shared among
• Morgan Stanley
• Norges Bank Investment Management
• AIA Group
• CBRE Group
• Henderson Global Investors
• 776.6 million shares for institutional and retail investors
• Timeline for offering
• 18 Feb - Offer to institutional buyers
• 28 Feb - Offer to public
• 7 Mar - list on SGX

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Commentary

Brand name
Mapletree is pretty much a big brand name in Singapore akin to Ascendas, both of which are government-linked. It is noteworthy to realise that Mapletree Investments manages a portfolio valued at S$19.9 billion. They have ample management experience in office, logistics, industrial, residential and retail.

China + Commercial Experience
The current IPO is a divestment of 2 China-based commercial assets into a REIT. China is not a new destination for Mapletree as they already easily manage 20 assets in China such as the Mapletree AIP in Guangzhou under Mapletree Logistics Trust. Out of these assets, 6 are commercial-related properties - Beijing Gateway Plaza, Hong Kong Festival Walk, Shanghai Silver Court, Nanhai South Station Enterprise City, Minhang Development Project and Nanhai Business City. The rest are mostly logistics and industrial with some residential properties. Having said that, Mapletree also has considerable commercial property experience outside of China with 7 other assets spread over Japan, Vietnam, Malaysia.

Quality of assets
Both are Grade-A offices in the heart of China and Hong Kong with size more than 100,000 sqm. They also consist of some retail space located at the base of the assets. Festival Walk was purchased by Mapletree Investments in 2011 for $2.4 billion.

Current REIT market conditions
REITs are clearly the outright winning category of 2012 as investors flocked to yield havens, resulting in a yield compression that we see today. Even so, REITs have still enjoyed considerable upside to the start of 2013. Mapletree brand name REITs have also done well in the current market conditions, surging even further in the last 2 days upon the announcement of listing of this REIT.

• Mapletree Commercial (listed 2011) - $1.445 15 Feb closing price compared to IPO offer of $0.88
• Mapletree Industrial (listed 2010) - $1.390 15 Feb closing price compared to IPO offer of $0.93
• Mapletree Logistics (listed 2005) - $1.240 15 Feb closing price compared to IPO offer of $0.68

And, for a tabulation of all SG-listed IPOs' performance since 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 this Mapletree Greater China Commercial 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!

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. Links are available all on the right of the page (at the navigation bar).

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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).

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
• Singapore's stock market trades at a ~9x PE (Source: Mystockinvesting.com)

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).

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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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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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
• 24.4x oversubscribed for public tranche
• $0.77/share
• TodayOnline Coverage
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
• Spin-off from Fortis Healthcare Group
• To raise $510.7million
• $0.90/share
• Applications open 15 Oct, close 18 Oct Noon
• - Review to follow - 
• Check out my article on "Third Largest IPO 2012 - Religare Trust"
• CNA Coverage
4. DeClout (Catalist)
• $0.25/share
• ST Coverage
5. Dynasty REIT
• To raise $1 billion
• TodayOnline Coverage
• Pending confirmation announcement of public tranche offer

[Summary CNA Coverage here]

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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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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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.

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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Third Largest IPO 2012 - Religare Health Trust

So, the anticipated third-largest IPO this year will finally be underway. It is none other than Religare Health Trust, aiming to raise $500 million in a initial public offering on the SGX. [Reuters link; Today online link] 

Here are some important details about the IPO that are available at the moment

• $500 million to be raised to reduce debts
• Medical and healthcare assets
• End Sept is the rumored listing period
• Business trust style
• Minimum dividend yield of 8.5% (impressive number but more details required on its sustainability and conditions)
• Assets taken from Fortis Health Care Group; aim to buy third-party assets in future
• Religare Capital Markets, Citigroup, Nomura, Standard Chartered and CIMB are acting as the IPO's bookrunners

Of course for now, details are sketchy and as much as you and I can guess from these few news sources. But on first impression, it does seem somewhat similar to that of Ascendas Hospitality Trust that listed last month in the second-largest IPO this year. Impressive dividend yields but somewhat not a very compelling investment given the IPO proceeds are mainly to service debts. Nonetheless, instutitional response over the next few weeks will give a better indication of its market depth and more details along the way will definitely help to make a better judgement. 

On a side note, it is interesting to note that none of the IPOs that listed on the SGX this year had made a loss on the first trading day. The best performers were Neo Group (Catalist listing) with a first day return of 55% on its offer price and Civmec (Mainboard listing) with a gain of 39%. The worst performer was Ascendas Hospitality Trust with a return of 0% on its first day's closing price.

For more statistics such as the one above on the performance of this year's IPO, do head to the dedicated IPO SG Statistics section of this blog.

Happy and healthy trading!

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Far East Hospitality Debut - Above Expectations

Far East Hospitality Trust listed on SGX mainboard on 27th Aug, 1 day ago, to a end day closing price of S$0.95. That represented a jump of 2cents from its IPO offer price. The 'pop' was also quite considerable considering that it reached a high of 0.98 before closing at 0.95. Today, the stock saw further buying pressure to close at $0.975 with a high of $0.98. That represents a 4.83% gain from IPO offer price of $0.93. 

Pretty impressive debut for a REIT-styled counter factoring into consideration that its IPO was priced on the top of the indicative range offered to the institutional tranche of $0.93, citing strong institutional and then, later, retail demand. Clearly, its Singapore-based hotel assets are a plus in gaining popularity with local investors.

Of course, the question is how did FEHT compare with the Ascendas Hospitality Trust? Both were marketed and packaged as stapled business trust and reit securities and the IPO response should give us a good picture to their future prospects and more importantly, as I always mention, market validation of their future earnings. On a side note, this comparison also value-adds to itself given the proximity of listing dates (exactly 1 month from each other) and almost similar market conditions (declining uptrend). 

The results of the comparison speaks for itself in the table below.

Of course, this is not the end to the comparisons of all IPOs in this year. Head over to "IPO SG Statistics" for a complete story of all IPO listings on the SGX this year.