SG Upcoming IPO

[Debronic]

Any idea which broking house is doing the placement for this NauticAWT?

Heard from market talk that it is UOBKH and that it is more or less covered but don't quote me.

[CityFarmer]

Choo Chiang Holdings: Registered IPO At S$0.35 Per Offer Share.
...
http://www.btinvest.com.sg/markets/news/...ce=si_news

The company website here
http://ccm.sg/www/index.php

[Reyes]

Choo Chiang Holdings: Registered IPO At S$0.35 Per Offer Share.
...
http://www.btinvest.com.sg/markets/news/...ce=si_news

The company website here
http://ccm.sg/www/index.php

Not bad for a local retailer that are making money. 30% net profit as dividend for FY2015/16.

Vested ...

[Debronic]

Choo Chiang Holdings: Registered IPO At S$0.35 Per Offer Share.
...
http://www.btinvest.com.sg/markets/news/...ce=si_news

The company website here
http://ccm.sg/www/index.php

Not bad for a local retailer that are making money. 30% net profit as dividend for FY2015/16.

Vested ...

Honestly, I don't understand why you would go for Choo Chiang's IPO if you had to choose one:

Choo Chiang:
- Small retail network concentrated mainly in Singapore
- Competitive nature of business
- Revenue, GP margin, Net margin, PAT all fell over the last 3 years
- All relative valuation metrics are relatively high: PE=12.4x for a company with declining earnings!
- 100% vendor sale, no proceeds raised by company
- Only saving grace is promised 30% dividend payout
- The properties are also carried at less than market valuation. If add in surplus, you get another $20 mil or so on NAV so P/B will probably drop to ~1.4x. But not sure how relevant this is unless you want to look at this as a property play...

NauticAWT:
- Global footprint with strong customer base (a lot of O&G players can claim this though)
- Proprietary formulation for strengthening material used for O&G structure repairs giving them some competitive advantage but not a whole lot
- Revenue, GP margin, Net margin, PAT all went up over the last 3 year
- PE at 6.5x or less than 6x (depending on how you calculate as previously posted) is almost half of Choo Chiang!
- 100% new share sale, no vendor sale
- Lower dividend payout at 20% but at half the PE means higher dividend yield
- Only big negative is the fact that it is an O&G play and of course this could negate everything listed above in the current environment but still….

Anyway, not trying to influence your decision. Just a bit puzzled based on what I see looking through the prospectuses.

[Reyes]

Choo Chiang Holdings: Registered IPO At S$0.35 Per Offer Share.
...
http://www.btinvest.com.sg/markets/news/...ce=si_news

The company website here
http://ccm.sg/www/index.php

Not bad for a local retailer that are making money. 30% net profit as dividend for FY2015/16.

Vested ...

Honestly, I don't understand why you would go for Choo Chiang's IPO if you had to choose one:

Choo Chiang:
- Small retail network concentrated mainly in Singapore
- Competitive nature of business
- Revenue, GP margin, Net margin, PAT all fell over the last 3 years
- All relative valuation metrics are relatively high: PE=12.4x for a company with declining earnings!
- 100% vendor sale, no proceeds raised by company
- Only saving grace is promised 30% dividend payout
- The properties are also carried at less than market valuation. If add in surplus, you get another $20 mil or so on NAV so P/B will probably drop to ~1.4x. But not sure how relevant this is unless you want to look at this as a property play...

NauticAWT:
- Global footprint with strong customer base (a lot of O&G players can claim this though)
- Proprietary formulation for strengthening material used for O&G structure repairs giving them some competitive advantage but not a whole lot
- Revenue, GP margin, Net margin, PAT all went up over the last 3 year
- PE at 6.5x or less than 6x (depending on how you calculate as previously posted) is almost half of Choo Chiang!
- 100% new share sale, no vendor sale
- Lower dividend payout at 20% but at half the PE means higher dividend yield
- Only big negative is the fact that it is an O&G play and of course this could negate everything listed above in the current environment but still….

Anyway, not trying to influence your decision. Just a bit puzzled based on what I see looking through the prospectuses.

Hi Bro,
Thanks for your in-depth comparison between this 2 counters. Will definitely take a closer look in NauticAWT. Not quite convince with O&G sector with recent market sediment but do worth for me to do some research.

[greengiraffe]

SGX becoming kachang puteh exch by the looks of debutants:

IX - I think pte equity scared so they IPO

Choo - quite obvious they are cashing out

Nautic - KS Tan - his name will sell but O&G - another cashing out

I give up liao if this is what SGX is about...

[Reyes]

SGX becoming kachang puteh exch by the looks of debutants:

IX - I think pte equity scared so they IPO

Choo - quite obvious they are cashing out

Nautic - KS Tan - his name will sell but O&G - another cashing out

I give up liao if this is what SGX is about...

Bo pian bro... not that easy to get good company to list here... They have to start somewhere to slowly put in big names to list.

[CityFarmer]

Very limited public offering from the three IPOs...

Three latest Catalist aspirants opt for safety of placements

SINGAPORE (July 16): Retail investors trying to get hold of shares in new Catalist listings iX Biopharma, NauticAWT and Choo Chiang Holdings may have a tough time.

Each of the three companies are offering a mere one million shares for public application, with the rest of their issues being placed out through their respective agents.

iX Biopharma, an Australia-based pharmaceuticals company, is issuing 65.5 million shares at 46 cents each to raise $30.1 million.

Choo Chiang, a distributor of electrical products and accessories, is issuing 32.3 million shares at 35 cents each to raise $11.6 million.

NauticAWT, which provides engineering services to the oil and gas industry, is issuing 28 million shares at 20 cents each to raise $5.6 million.

“Why list the company in the first place?” says S. Nallakaruppan, an investment specialist with a local brokerage firm, via e-mail. “It is supposed to be an ‘initial public offer’ and not an ‘initial private offer’.”
...
http://www.theedgemarkets.com/sg/article...placements

[greengiraffe]

This continue to be a legacy issue initial private offering... if regulators don't level the playing field, it will always be a banker - player game...

Very limited public offering from the three IPOs...

Three latest Catalist aspirants opt for safety of placements

SINGAPORE (July 16): Retail investors trying to get hold of shares in new Catalist listings iX Biopharma, NauticAWT and Choo Chiang Holdings may have a tough time.

Each of the three companies are offering a mere one million shares for public application, with the rest of their issues being placed out through their respective agents.

iX Biopharma, an Australia-based pharmaceuticals company, is issuing 65.5 million shares at 46 cents each to raise $30.1 million.

Choo Chiang, a distributor of electrical products and accessories, is issuing 32.3 million shares at 35 cents each to raise $11.6 million.

NauticAWT, which provides engineering services to the oil and gas industry, is issuing 28 million shares at 20 cents each to raise $5.6 million.

“Why list the company in the first place?” says S. Nallakaruppan, an investment specialist with a local brokerage firm, via e-mail. “It is supposed to be an ‘initial public offer’ and not an ‘initial private offer’.”
...
http://www.theedgemarkets.com/sg/article...placements

[Debronic]

Hi Bro,
Thanks for your in-depth comparison between this 2 counters. Will definitely take a closer look in NauticAWT. Not quite convince with O&G sector with recent market sediment but do worth for me to do some research.

To be sure, I am not saying you should apply for one or the other. Just saying that Choo Chiang hardly looks like a good choice if you had to choose.