Half-Time Report: How Are The IPOs In Singapore In 2017 Faring?
In this week alone, there were two new IPOs to the Singapore market, namely NetLink NBM Trust and Union Gas Holdings. This brings the total number of IPOs as of 21 July 2017 to 12. All of these IPOs marked their entrance on the market with an opening price higher than the IPO price, with the exception of NetLink which opened at the same price.
Catalist vs. Mainboard
Catalist has a Minimum Trading Price (MTP) rule of $0.20 a share which provides companies with flexibility to raise funds. This encourages generally smaller companies to list in Singapore. Catalist companies are also required to have a sponsor and they benefit from the sponsor’s guidance and advice in various aspects.
Mainboard has to comply with market capitalization and profit rules. Listing on the Mainboard requires approval from the SGX as well as the MAS. It is also easier for foreign companies to list on the Catalist as only 1 Singapore-resident independent director is required, as compared to 2 needed to list on the Mainboard.
Here are all the IPOs of 2017, in order from the latest listing to the very first listing back in January.
*Note that the current price listed for the share price below is based on data taken on 21 July 2017 and listed in Singapore Dollars.
Union Gas Holdings (SGX: 1F2)
The latest IPO on the market is Union Gas, a provider of fuel products in Singapore with more than 40 years of operating track record. Their business has 3 main segments: (1) Retail LPG Business, (2) CNG Business and (3) Diesel Business. They are amongst the biggest suppliers of bottled LPG cylinders for domestic use, serving more than 140,000 households. With regards to their LPG business, it is important to note that more Singaporean households are opting to switch to piped gas. Union Gas intends to distribute at least 50% of its net profit as dividends for FY2017.
NetLink NBN Trust (SGX: CJLU)
$2.3billion IPO is the biggest in Singapore in 6 years. NetLink owns and deploys all the fibre optic cables and offers wholesale dark fibre services to qualifying persons (such as Singtel, Starhub and M1). They also install connectivity to homes, offices and buildings. The number of fibre subscriptions have been steadily increasing over the years, which has contributed to NetLink’s performance. NetLink has more than 1.09 million end-user connections, with about 62% of its total revenue coming from residential connections.
NetLink appeals to investors with its relatively low risk and promises investors an annualized dividend yield of 5.43% for the period to March 31 2018 and a 5.73% yield the year after. The IPO represents around 75% of NetLink’s total shareholding. One of NetLink’s key stakeholders is global communications company, Singtel (SGX: Z74). Singtel will continue to hold slightly less than 25% of NetLink after IPO.
Y Ventures Group (SGX: 1F1)
Y Ventures is a data analytics driven e-retailer and distributor. They specialize in retail data analytics, marketing, distribution and sale of merchandise. Y Ventures utilize data analytics to assess market trends, gain pricing intelligence, understand consumer sentiment and analyze market competition, all to improve cost efficiency and ultimately their sales results. Their product categories include: (1) Books publishing (2) Home and Décor and (3) Fast moving consumer goods. They sell their products on online marketplaces such as Amazon, eBay, Qoo1 and Lazada. Y Ventures intends to declare a dividend of no less than 20% of its net profit after tax for FY2017 and FY2018. There was no public tranche available for retail investors to apply for.
Shopper360 (SGX: 1F0)
Shopper360 is a Malaysian marketing firm specializing in services such as in-store advertising, digital marketing and event management. With 30 years of experience in in-store advertising and they are looking to capture opportunities in the digital economy. They are also looking at expanding their service offerings, especially into new geographical locations. Their business can be categorized into: (1) In-store advertising and digital marketing, (2) Field force management and (3) Sampling activities and events management. Shopper360 intends to pay a dividend of no less than 20% for FY2017 and FY2018. There was no public tranche available for retail investors to apply for.
HRnetGroup Ltd (SGX: CHZ)
HRnetGroup is one of the largest Asia-based recruitment agency in the APAC ex-Japan region with a strong track record. It is Singapore’s most profitable recruitment player in terms of pre-tax profits, holding 20.6% market share in Singapore. They operate in 10 Asian growth cities with a diversified customer base and over 2000 clients. Their two operating business segments are: (1) Flexible staffing and (2) Professional recruitment. Their key brands include: HRnetOne, RecruitExpress, PeopleSearch, RecruitFirst, SearchAsia and PeopleFirst.
World Class Global (SGX: 1E6)
World Class Global (WCG) is a real estate company that is involved in both property investment and property development in Australia and Malaysia. WCG is the property arm of Aspial Corp, a jewellery retailer. Aspial will retain an 80% stake in WCG after the IPO. However, as its properties are overseas, WCG is prone to overseas tax, regulations, accounting practices and forex risks. Interestingly, for the last 3 years WCG has been loss-making. WCG intends to pay dividends of up to 50% of its net profit for year ending 2019 and after.
Sanli Environmental (SGX: 1E3)
Sanli Env is an environmental engineering company with over 10 years in water and waste management. Water management refers to the treatment of raw and used water; while waste management refers to the treatment of refuse in incineration plants. Their main business segments include: (1) Engineering, Procurement and Construction and (2) Operations and Maintenance. Waste management is a growing sector, especially with the increasing focus on environmental issues in recent years. Sanli’s major customer is PUB, Singapore’s national water agency. On the day of its listing, Sanli opened at $0.40, almost double its IPO price of $0.225.
Aoxin Q&M (SGX: 1D4)
Aoxin Q&M is the China arm of listed group Q&M Dental (SGX: QC7), which operates dental clinics in Singapore, Malaysia and China. Aoxin operates 11 dental centres comprising of 4 dental hospitals and 7 polyclinics across 4 Liaoning cities, with 240 dental professionals. Aoxin has 2 core businesses: (1) Provision of private dental services and (2) Distribution of dental equipment and supplies. The funds from the IPO would be used to expand its business and enhance infrastructure. There was no public tranche available for retail investors to apply for.
UnUsUal Limited (SGX: 1D1)
UnUsUal is the events production unit of film and TV content producer MM2 Asia (SGX: 1B0). UnUsUal specializes in the production and promotion of large-scale live events and concerts, mostly in Singapore. They have worked on over 150 large scale concerts and 200 events. International artistes that with their events and concerts in Singapore organized by UnUsUal include: Jacky Cheung, Foo Fighters and Justin Bieber. There was no public tranche available for retail investors to apply for.
Kimly Limited (SGX: 1D0)
Kimly’s listing on the market was one of the most popular and talked about IPO in first half of 2017. It was oversubscribed a whopping 355 times. They operate and manage coffee shops under the “Kimly” brand, “Foodclique” brand as well as a third-party brand. Kimly leases food stalls to tenants while operating drinks stalls and providing cleaning services. Since its IPO, Kimly has acquired a coffee shop and industrial canteen. This is in line with their strategy to establish new food outlets and expand its business.
Dasin Retail Trust (SGX: CEDU)
Dasin is a business trust that holds 3 shopping malls in the Guangzhou province. Based on its listing price of $0.80 and distribution, Dasin has a high projected distribution yield of 9%. Since its IPO, Dasin has acquired Shiqi Metro Mall. Together, Dasin’s 4 properties have a weighted average occupancy rate of 99% and a weighted average lease expiry (WALE) of 7.4 years. Dasin has also seen its leadership change hands, with a newly appointed CEO Mr. Li Wen in June 2017 (upon the resignation of previous CEO Mr. Yang Bin).
Samurai 2K Aerosol Limited (SGX: 1C3)
Samurai is a leading aerosol coating specialist based in Malaysia and was the first stock to be listed in 2017. They focus on producing high performance coating solutions for automotive refinishing and refurbishing industry. They are distributed in more than 4 countries including Malaysia (headquarters), Indonesia, Thailand and Philippines. The company intends to upgrade its production facilities, focus on R&D, marketing, branding and expand through acquisition. There was no public tranche available for retail investors to apply for. Samurai is also the best performing IPO based on the percentage change in IPO price and current price.
Summary Of IPOs 2017 (As of 21 July 2017)
|Name||SGX Code||Date of Listing||Listing||IPO Price (S$)||Opening Price (S$)||Current Price* (S$)||% Change
IPO vs. Current
|Union Gas Holdings||1F2||21 Jul 2017||Catalist||0.250||0.295||0.290||+16.00%|
|NetLink||CJLU||19 Jul 2017||Mainboard||0.810||0.810||0.805||-0.62%|
|Y Ventures||1F1||11 Jul 2017||Catalist||0.220||0.270||0.199||-9.55%|
|Shopper360||1F0||30 Jun 2017||Catalist||0.290||0.345||0.315||+8.62|
|HRnetGroup||CHZ||16 Jun 2017||Mainboard||0.900||0.950||0.880||-2.22|
|World Class Global||1E6||15 Jun 2017||Catalist||0.260||0.270||0.245||-5.77|
|Sanli Env||1E3||8 Jun 2017||Catalist||0.225||0.400||0.350||+55.56|
|Aoxin Q&M||1D4||26 Apr 2017||Catalist||0.200||0.230||0.210||+5.00|
|UnUsUal||1D1||10 Apr 2017||Catalist||0.200||0.455||0.495||+147.50|
|Kimly||1D0||20 Mar 2017||Catalist||0.250||0.550||0.405||+62.00|
|Dasin Retail Trust||CEDU||20 Jan 2017||Mainboard||0.800||0.805||0.800||–|
|Samurai||1C3||16 Jan 2017||Catalist||0.200||0.250||0.550||+175.00|
Top Performer: Samurai 2k Aerosol Limited (+147.50%)
Worst Performer: Y Ventures (-9.55%)
Read our 4 Stocks This Week column for weekly updates on key stocks of the week.
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