Inphyy Corner

IPO - Eurosports Global Limited

Eurosports Global Limited ("Eurosports Global" or the "Company") is offering 80m shares of which 40m are new shares and 40m are vendor shares at 28c each. 78.5m shares will be available for public offer and 1.5m shares for the public.

The offer will end on on 15 Jan 2014 at 12pm and starts trading on Catalist on 17 Jan 2014.The market cap will be around $74.2m.

The Company was started by the Goh brothers and they specializes in the distribution of ultra-luxury automobiles. The brands they carry are primarily Lamborghini since 2001 and Alfa Romeo since 2004. 2 new automotive brands were added in 2012 and i have to say I am not familiar with those brands since i am not in that league. haha and even if i am in that league, i would probably not buy a Lamborghini.

Financial Highlights


The revenue for last FY declined from $113m to $86m and net profit dropped from $7.6m to $6.7m. The NAV of the company is around 7.35c versus the 28c paid by investors.

Based on the earnings of $6.7m, assuming service agreement was in place and based on enlarged share cap of 265m shares, the EPS will be around 2.18 cents and that translate into a historical PER of 12.8x.

Q1 FY 14 continue to show a decline in revenue and net profit over the same period last year and i am not privy to the current financial performance.

Shareholders

Post the IPO, Melvin will own 41.9% and Andy 27.9% with the balance of 30.2% held by the public. Effectively, no outsiders can take over the company as the majority ownership is still held by the brothers.

Special Dividend

The Company intends to sell and lease back its Teban Garden showrooms and pay a dividend of between $6m to $8m. I am not sure if that is a good move as it will subject the company to market rates and the majority of the payout will go back to the founders anyway. A $6m payout will translate into a yield of around 8% based on the IPO price but there is no formal dividend policy thereafter.

What I like about the Company

•Allow Lamborghini fans to have a chance to own a small piece of the action
•Small float means easy to place out to the towkays who buy the cars from them. Each car probably cost more than $1m and I am sure they know many towkays in Singapore who can help support the stock.

My Concerns

•Company is highly dependent on the distributorship from Lamborghini. The manufacturer is able to terminate the agreement at anytime with a 12 months notice period.
•Car industry is a competitive one. The other competitors in the ultra luxury market will probably be Ferrari, Bentley, Maclaren, Aston Martin and to a lesser extent Maserati and Porsche.
•Limited growth prospects unless they can acquire other brands.

My ratings

There are no similar peers that i can think of locally except TCIL (Tan Chong International). TCIL is trading at good value of around 6x PE, a discount to book value and a yield of 3% but they are targeting different consumer segments. Investors should seriously do their homework if they want to buy Eurosports for the long term and compare it with TCIL while punters don't really care since 28c is a nice number. My view is that if they do the placement well, the company should open above 30c and it is supported by a special dividend. However, i will give it a miss since i don't really like the car's design, limited growth prospect and declining profit trend. I will give it a 1 chilli rating - buy only if you like Lamborghini cars.


Courtesy of Mr.IPO

singapore-ipos.blogspot.sg/

ASL Marine: PT. Capital Nusantara Indonesia To Be Listed On The IDX On 16 January 2014

15 Jan 2014 17:39

ASL Marine Holdings Ltd. wishes to announce that PT. Capital Nusantara Indonesia has successfully concluded its initial public offering, with listing on the Indonesian Stock Exchange slated for 16 January 2014. With the issuance of 208,360,000 new shares in the capital of PT CNI at Rp200 each, the IPO raised total gross proceeds of Rp41.672 billion, equivalent to approximately S$4.5 million. Following the completion of the IPO, the Company's equity interest in PT CNI is 27%...

aslmarine.listedcompany.com/newsroom/201...257C6100197FBE.1.pdf

Sarin: Launches Galaxy Ultra Service In India And Israel Service Centres

15 Jan 2014 17:17

Sarin Technologies Ltd announced that, with the successful culmination of the Galaxy Ultra testing in Surat, India, it is launching the commercial service of the Galaxy Ultra in the Surat and Tel-Aviv service centres. Service at additional service centres will commence subsequently, as warranted by demand, and sales and delivery of Galaxy Ultra systems to interested customers is expected later in 2014. The new Galaxy Ultra offers significant advantages to manufacturers as it provides inclusion scanning of the rough diamond at microscope level magnification, in addition to the normal scanning executed by the standard Galaxy systems...

sarin.listedcompany.com/newsroom/2014011...257C610031C5B1.1.pdf

KSH Holdings to acquire Malaysian freehold properties for S$36m

Eyeing 26 plots of freehold land.

KSH Holdings Limited announced that Klang City Development Pte Ltd, (KCD), a 40% owned associated company of the Group, has through a nominee company incorporated in Malaysia, entered into a Sales and Purchase agreement to acquire 26 plots of freehold land.

The plots combined measure approximately 679,460 square feet and are located in Mukim Klang, Daerah Klang, Negeri Selangor.

The total purchase consideration for the proposed acquisition is MYR 91,727,100 or approximately S$36.0 million.

The purchase consideration will be contributed by the shareholders of KCD in proportion to their respective shareholdings.

The Group’s proportionate share of the purchase consideration amounts to approximately S$14.4 million, which will be funded by proceeds from Floating Rate Notes issued by the company and external bank borrowings.

Marine firm Kim Heng raising $36mil via IPO

Written by Reuters
Thursday, 16 January 2014 09:24

Singapore-based Kim Heng Offshore & Marine Holdings, which has a track record of more than 40 years, has launched its initial public offering to raise net proceeds of $36.4 million to help fund its expansion plans.

The Catalist IPO is $43.5 million in size, with 174 million shares - 160 million new units and 14 million vendor units - on offer at 25 cents apiece, valuing the group at $177.5 million post-valuation.

GLP to develop logistics facility in Chiba, Japan

www.businesstimes.com.sg/premium/compani...chiba-japan-20140116

Koh Bros, Heeton clinch Westwood EC site

www.businesstimes.com.sg/premium/compani...ood-ec-site-20140116