Sanli Environmental

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Sanli Environmental Limited received strong investor interest for its initial public offering of 52,000,000 shares at S$0.225 each, in conjunction with its proposed listing on the Catalist Board.

Sanli’s IPO is anchored by Vanda 1 Investments Pte. Ltd., ICH Gemini Asia Growth Fund Pte. Ltd. and Mr Jeremy Lee Sheng Poh. The aggregate gross proceeds raised from the anchor investors in relation to the Invitation were approximately S$5.45 million. Vanda 1 is managed by Heliconia Capital Management Pte. Ltd., an investment company and a wholly-owned subsidiary of Temasek Holdings (Private) Limited. Vanda 1 has a shareholding of 7.97% in Sanli post-Invitation, an increase from its existing stake of 5.36%2 as a Pre-IPO Investor. ICH Gemini Asia Growth Fund Pte. Ltd. is a private equity fund managed by ICH Gemini Pte. Ltd. Mr Jeremy Lee Sheng Poh is a private investor with many years of investment experience.

Sanli Environmental Limited is an environmental engineering company with more than ten years of experience in the field of water and waste management. The Group’s expertise is in the design, supply, delivery, installation, commissioning, maintenance, repair and overhaul of mechanical and electrical equipment as well as instrumentation and control systems in water and used water  treatment plants, pumping stations and incineration plants. To date, Sanli has completed more than 1,000 water and waste management projects.

The Group’s business is divided into two main business segments: Engineering, Procurement and Construction; and Operations and Maintenance. 

Backed by its strong engineering capabilities, Sanli has the ability to integrate mechanical, electrical and process engineering expertise to provide customised, cost and time efficient integrated engineering solutions and services to its customers.

Sim Hock Heng, CEO of Sanli, said, “Sanli’s successful listing on the Singapore Exchange marks an important milestone for our Group and I would like to extend my heartfelt appreciation to all our shareholders for their support and confidence in Sanli. We believe that this listing will open up new opportunities for us by serving as a platform for Sanli to tap the capital markets to fund our future growth plans, as well as to build Sanli’s brand in Singapore and the ASEAN region.” 

Sanli Environmental Limited opened at $0.40 today.
Specuvestor: Asset - Business - Structure.
I am generally surprised by the strong support for recent IPOs. Some of which has rather good businesses which I am interested in, but their prices put me away. But for Sanli, I cannot comprehend why there would be willing buyers at twice its IPO price. It is a regular contractor that construct and repair water and waste management facilities. It is unlike Hyflux which has proprietary technology.
In markets, what is true works in the long run. What people perceive to be true works in the short run.
Well said, I give you one like...
Sanli has secured S$51.5 million worth of contracts from the Public Utilities Board (PUB)

Sanli Environmental Limited announced that it has secured new Engineering, Procurement and Construction ("EPC") and Operations and Maintenance ("O&M") contracts worth a total of S$51.5 million from the Public Utilities Board (PUB). These contract wins will bolster the Group’s order book to S$185.9 million as at 22 January 2019.

Under the EPC contract which is valued approximately at S$51.0 million, Sanli will be involved in the construction works for the replacement of mechanical and electrical equipment at Kranji water reclamation plant. This contract is expected to contribute to Sanli’s revenue for the next two (2) years from the financial year ending 31 March 2020 ("FY2020").

Under the O&M contract, Sanli will provide maintenance services of approximately S$0.5 million for the replaced mechanical and electrical equipment at the same water reclamation plant. This contract is expected to contribute to Sanli’s revenue after the completion of the EPC Contract.

More details in
Specuvestor: Asset - Business - Structure.
Not forgetting the last one announced in November:

So that's two separate announcements on contract wins totaling more than $105 mil or 1.4 times their FY17 revenue and neither generated a blip of interest. Looks like they have gone from IPO darling to market obscurity despite having good anchor institutional investors. I think one of their biggest problems is free float. Their latest annual report shows that the exec directors and anchor investors are still holding on to more than 89% of the total outstanding shares. Kind of defeats the purpose of being listed when the float is so low less than 2 years after listing unless it is just to raise their corporate profile. 

(Raffles nominees below should be largely ICH Gemini Asia Growth Fund Pte. Ltd. which is listed as a substantial shareholder with 13.6 million shares)

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Sanli bags new contracts in Singapore and Myanmar; boosts order book to S$198.0 million

Highlights :
* S$7.8 million O&M contract wins from the Singapore Public Utilities Board reflects the continued confidence the public sector has in the Group’s capabilities
* Expansion into Myanmar is progressing well, as the Group secures EPC contracts worth approximately S$4.3 million
* Order book stands at S$198.0 million

More details in
Specuvestor: Asset - Business - Structure.

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