Interplex Holdings (formerly: Amtek Engineering)

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#1
How often have there been cases this this? A privatized company returns to raise funds from the capital markets!

Nov 12, 2010
Privatised Amtek returns to the market


AMTEK Engineering is making a return to the Singapore bourse after its delisting three years ago.

Amtek, which makes precision metal, plastic and rubber components for industrial equipment and consumer products, was taken private in 2007 after it was acquired by a consortium, which included CVC Capital Partners and Standard Chartered's private equity arm.

In a prospectus lodged with the Monetary Authority of Singapore yesterday, Amtek's management said several changes have been implemented at the firm since then, making it a more diversified company with a cleaner balance sheet.

'These included expanding our capabilities to provide end-to-end solutions, increasing our focus on cross-selling to our existing clients, streamlining our organisation to offer a one-stop manufacturing solution, increasing our presence in growing Asian markets and industry sectors, optimising our manufacturing footprint and enhancing our operational and financial flexibility and discipline,' the prospectus added. These changes helped to mitigate the impact of the financial crisis on the firm's financials.

Amtek's revenue for the year ended June30 stood at US$638 million (S$822 million) - lower than its pre-crisis level of US$786 million in 2008. Its net profit this year was US$21.7 million, less than half of 2008's profit of US$46.2 million. However, it was an improvement over last year's loss of US$12.4 million.

The Straits Times understands that Amtek plans to raise between US$250 million and US$350 million from the initial public offering. The proceeds will be used to pay off existing debts and on capital expenditures, including the expansion of its Shanghai plant.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#2
I advise caution on this one. Amtek was privatized at a fair price, and the old proven management team has since left and now happily retired and playing golf. The privatization was sponsored by a private equity fund CVC, and I bet these financial engineers must have stripped Amtek of its cash and loaded the company substantial debts since. The IPO now must be part up of their exit plan!
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#3
I agreed with dydx on this case that this is possibly an exit plan. As usually if it is really good and highly profitable business why is there a need to list or solicit for investors? And especially after just privatized once before.
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#4
agreed.. we are best avoiding this counter... if it was great, they would be holding on to it, and reaping the profits.. IPO = Its Probably Overpriced in this case
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#5
(Copies from another forum)

by starbugs » Sat Nov 20, 2010 10:03 am

Say NO to Private Equity Greed, Say NO to Amtek IPO

Amtek was one of my double-bagger previously. I just took a look at the prospectus, but I don't think I will go for it this time.

1) The company was stagnant from the time it got privatised till now. Revenue dropped from US$786m in 2008 to $638m in 2010 (Jun end). Profits more than halved from $46.1m to $21.7m. Made a loss of $12m in 2009.

2) The private equity owners paid themselves a dividend of SG 23.46c per share (about US$100m) in 2009, causing equity to half.

3) YET, the company is trying to raise up S$547mil from IPO, about the same as the takeover price of $552mil. The IPO would value Amtek at $706m to $869m, up to 57% above takeover price. Historic price-earnings ratio at IPO is 33 to 40 times.

4) The shares offered are all vendor shares, i.e. the company itself would not get a single cent

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#6
Hi tonylim,

I've merged your post into an older Amtek thread. In future, just do a simple search to see if a thread already exists for a specific company, this will make it easier to keep track of all posts and news relating to that specific thread.

Thanks! Smile
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#7
(20-11-2010, 10:34 AM)Musicwhiz Wrote: Hi tonylim,

I've merged your post into an older Amtek thread. In future, just do a simple search to see if a thread already exists for a specific company, this will make it easier to keep track of all posts and news relating to that specific thread.

Thanks! Smile

Noted with thanks.
(I was not aware there was already a thread about Amtek)
Why in the first place MAS/SGX allow such company go IPO ?
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#8
(20-11-2010, 10:37 AM)tonylim Wrote: Why in the first place MAS/SGX allow such company go IPO ?

My view is that as long as there are willing buyers (of the vendor shares in this case), and the private equity fund is a willing seller, then you will be allowed to carry out said transaction(s). SGX is just the middleman cum facilitator and they earn fees from such listings, so they are really not interested in acting as a "watchdog" to see if the IPO is genuinely for raising funds for expansion or merely an exit strategy for the incumbent shareholders.

So I guess it's a case of Caveat Emptor, indeed!
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#9
I bet there will be tons of goons chasing this IPO...

The underwriters will push this stock up as usual..

I wonder how much shares will be allocated for sale?
The private owners definitely has to keep about 20% or more to retain control right?
They cannot sell out everything until 6 mths later right??

Anyway, this is definitely a con JOB..
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#10
Avoid this one at all cost. Off-loading IPO.
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