King Wan Corporation wins S$26 m worth of new M&E contracts
Order book stands at S$168.9 million worth of M&E engineering contracts lasting to 2016
SINGAPORE, 28 October 2013:
MAINBOARD-LISTED King Wan Corporation Limited (King Wan or the Group) (庆源企业), today announced it has secured five new mechanical and electrical (M&E) contracts in Singapore worth a total of S$26 million during the period from August to October 2013.
The 5 new contracts are as follow:
* Air conditioning and mechanical ventilation project for the Alexandra Echelon Condominium;
* Plumbing, sanitary, gas and fire protection installation project for Tampines N4 C27 (289-unit HDB project)
* Plumbing, sanitary and gas installation project for the Overseas Family School;
* Plumbing, sanitary and gas installation project for the Buangkok Jewel (616-unit Condominium);
* Plumbing sanitary and gas installation project for the Water Woods (373-unit Executive Condominium).
These projects will commence in 2013 and are scheduled to be completed by 2016.
Ms Chua Eng Eng (蔡 莹 莹), Managing Director of King Wan said: “The successful wins of these new contracts demonstrate the sustainable growth of our M&E business. With these new contracts, our Group’s order book to date stands at S$168.9 million, with M&E contracts which will keep us busy to 2016. While we remain relentless in securing new contracts, we shall remain mindful of costs control measures and shall stay committed to our objective of delivering reliable services to our customers and executing our projects well and on time.”
<vested>
Given current Thailand chaos situation and the deadline is approaching, the chance of KTIS go public seems fading away....
Worst case scenario: what if KTIS decided to scrap the listing plan? How will it impact on Kingwan?
http://infopub.sgx.com/FileOpen/KWCPress...eID=253762
It was mentioned in the King Wan Press Release dated 26 Aug 2013 that
"KTIS will monitor the market conditions during this 6-month window period for the most appropriate time to launch the IPO."
It is really difficult to time the market and most of the time 人算不如天算.
While you wait and look back, you realized that you missed some good opportunity.
(10-01-2014, 01:18 AM)desmondxyz Wrote: [ -> ]Given current Thailand chaos situation and the deadline is approaching, the chance of KTIS go public seems fading away....
Worst case scenario: what if KTIS decided to scrap the listing plan? How will it impact on Kingwan?
Under SETs, Listing rule book
Chapter 3 - Filing of Application and Consideration for Approval of Securities
DIVISION 1
Procedures for Filing of Application
Point 19 - the Board may grant relaxation on the period of time for distribution of shareholdings under the first paragraph, provided that the
applicant must request for relaxation and provide explanation of the reasons therefore in writing to the Board not less than 7 days before the expiry date under the first paragraph and provided further that the period of relaxation must not exceed 6 months from the expiry date of the period under the first paragraph......However, such period of relaxation
must not exceed 1 year from the commencement date of public offering of the ordinary shares.
They probably will file for extension due to political unrest.
(10-01-2014, 01:04 PM)DP28 Wrote: [ -> ] (10-01-2014, 01:18 AM)desmondxyz Wrote: [ -> ]Given current Thailand chaos situation and the deadline is approaching, the chance of KTIS go public seems fading away....
Worst case scenario: what if KTIS decided to scrap the listing plan? How will it impact on Kingwan?
Under SETs, Listing rule book
Chapter 3 - Filing of Application and Consideration for Approval of Securities
DIVISION 1
Procedures for Filing of Application
Point 19 - the Board may grant relaxation on the period of time for distribution of shareholdings under the first paragraph, provided that the
applicant must request for relaxation and provide explanation of the reasons therefore in writing to the Board not less than 7 days before the expiry date under the first paragraph and provided further that the period of relaxation must not exceed 6 months from the expiry date of the period under the first paragraph......However, such period of relaxation
must not exceed 1 year from the commencement date of public offering of the ordinary shares.
They probably will file for extension due to political unrest.
I has the similar enquiry and I emailed the IR couple of days back. Heres the reply I got, should pretty much answer most of our questions.
Dear XXX
Thanks for your email. We are the Investor Relations consultants and represent King Wan Corporation.
The listing approval granted by the Office of Securities and Exchange Commission (“SEC”) in Thailand to KTIS is valid for a (6+6)-month period from 16 August 2013.
In other word, KTIS has up to six months (with the option to extend it for a further six months) to list/(Sell) its shares to the public.
In light of the current political situation in Thailand, KTIS is closely monitoring the development closely for more conducive market conditions to list.
King Wan will make further announcements when there are any new developments.
Please contact me if you have further queries.
Kind Regards
Wayne Koo
Managing Director
Waterbrooks Consultants Pte Ltd
Emailed KingWan IR recently with regards to what KingWan has planned in event that the listing of KTIS does not proceed as planned.
Dear Mr XXXX, good evening
Thanks for your email.
King Wan has just announced that
(1) the Office of Securities and Exchange Commission in Thailand ("SEC") had on 14 February 2014 officially given the approval for KTIS to extend the deadline to sell its shares to the public up to 15 August 2014.
(2) it has entered into a Third Supplemental Deed with KTIS to extend the time period set out in the Sales and Purchase Agreement for the allocation of KTIS' publicly listed shares to 15 August 2014. (See attached SGX announcement).
King Wan;s management is very hopeful at this point in time that KTIS will be listed by the extension date.
The management will not be able to comment on the possible alternatives or decisions they would make, should KTISs do not get listed by 15 August 2014.
Please give me or my colleagues a call at the below numbers or email if you require further queries.
Kind Regards
Wayne Koo
Managing Director
Waterbrooks Consultants Pte Ltd
Believe that KingWan's price might take a dip in the event that KTIS does not get listed. However, being a value investor, I would continue holding the company. Would like to know what is the views of fellow forumers.
(Vested)
Kingwan's current share price should have priced in the high expectation of the $50mil windfall from KTIS listing. If it doesn't get listed, its will likely suffer more than just a dip. Its dividend payout will lend some support to its price but not much. Any premium built into its current price will be removed if KTIS listing went haywire.
The last date for this to take place will be 15 Aug this year. I expect a big slide in confidence if KTI still cannot get listed by late July to early Aug.
KingWan's M&E business is still doing fine but those two Thai businesses contributed half of KingWan's profit before they were disposed of. It actually made KingWan quite risky now. Its PE is about 4 before this event. Since this event, profit has halved so PE doubled. Then price went up in anticipation and so PE raised further. PE is now ~14.
No sure how their property venture is turning out but it doesn't seems to have contributed strongly to its bottomline, if any.
Not a call to buy or sell. DYDD.
(Vested)
