Download the Prospect here
Offer Price: $0.25
Offer Size: 168m new shares
Public Tranche – 2m shares
Placement Tranche – 166m shares
NAV per share (post-IPO): S$0.083 (8.3 cents only)
Historical PE: 5.6x (FY12)
Market Cap (post-IPO): S$166m
Open: 17 May 2013
Close: 22 May 2013 12pm
Trading: 27 May 2013 9.00 a.m. (on “ready” basis)
Introduction
Soilbuild Construction Group Limited (SBCL) are a general construction company with
over 36 years of experience which they handle a wide range construction projects and
our Subsidiary, Soil-Build, is graded A1 by the BCA under the registration category
CW01 for General Building, which allows them to tender for public sector projects in Singapore of an unlimited contract value. SBCL are principally engaged in building
works in Singapore in which they act as the main contractor. In addition, SBCL are
also engaged in architectural works in Singapore in which they act as a direct contractor, and in project management services in Singapore in which they act as the project manager. In connection with the proposed expansion of their construction business into Myanmar,
as at the Latest Practicable Date, SBCL have secured two contracts in Myanmar,
In connection with the proposed expansion of our construction business into Myanmar,
as at the Latest Practicable, SBCL have secured two contracts in Myanmar, as further described below, and are intending to further strengthen their presence in Myanmar:
• in March 2013, a consulting services agreement with a third party (a company incorporated in Myanmar) in relation to the provision of professional consultancy and
project management services for a proposed hotel development by that third party in Myanmar (“CS Agreement”).
Such services include preliminary assessments and project organisation, contract
administration and management, architectural design, structural and mechanical and
engineering consultancy, construction management and quantity surveying; and
• in April 2013, acceptance in-principle by another third party (a company incorporated
in Myanmar) of our offer to provide project management consultancy services for three
residential and/or commercial developments in Myanmar, such acceptance in-principle being subject to the execution of a formal letter of award. It is envisaged that such services will include preliminary assessments and project organisation, contract administration and
management, and construction management.
Financial Highlight
Use of Proceeds
Business Prospects
Why Invest in the IPO
Special Highlight
My Personal View
If you have been following my blogs or my stock watchlist and winner
stocks, you will notice that never once have I talk about a Construction
company. There are various reasons but the most obvious one is that
I don't believe in their potential. Yes, the government is doing lots of
huge construction projects right now with the MRT lines, new expressways,
and of course the public and private residence projects all over the country.
There are big-amount construction project to be won but the margin that I
see is just too small, and the competition will get fiercer as the time goes by.
The only bright spot that I see in the company is its venture into the Myanmar
market. I believe that the prospect is better much better than our small
red dot. I will keep a lookout on how this venture turn up to be.
Soilbuild is a re-list IPO and I can say that I wasn't interested in the stock
way back when it was listed and this time, it is getting re-listed again with
a bit of change here and there. I will pump money into this IPO, but do take
note that it is only because it is a IPO punt. If I don't get it, I will gladly "donate"
my $2 to the bank. But if I get it, I will also gladly sell it away on its debut
and take the profits that is much better than the bank interests. There are only
2 million shares for the public and I expect a very good application ratio so
it is like another Toto draw again. Its ok, treat the $2 as buying a quick-pick.
