Dear All,
We would like to share another IPO of late for your perusal:
The Broking House says:
(Extracted from research report published)
Fair Value (FV) for CYE 2015 = RM 1.09
Fair or not Fair?
Humble Pie view:
Look at OWG Prospectus Page 18:
Item: 3.6(i) says:
For Year End 30 June 2014 (FYE 201), enlarged issue and paid up capital of 185m shares which translates to a P/E 11.
Their latest Audited Report was 2014. Basically they are selling to you the company VALUE PEG at P/E 11 . As posted in my article prior before this:
Would you buy if I am telling you I am selling my company to you at 11x VS Fixed Deposits guaranteed by PIDM at P/E 18?
From this scenario, OWG is selling to you his company AT THE MARKET RATE. Not expensive and not cheap either. It's FULLY VALUED,
Closing Price @ 0.9 on 2/1/2015
= P/E 11.25
Another point to take no is:
Utilization of Proceeds:
Komtar Project 60.5%
Business Expansion 26.2%
Working Capital 4.2%
Listing Expenses 9.17%
Money Raised for Business Purposes 86.7%
Means for every RM 1 raised, about RM 0.87 is for Business Purposes!
See the difference between OWG and EA?
BTW do you notice, Dato' Richard Koh still holding a stake of 69% post IPO?
He has much control on the company so to say.
Personally I will not buy at 0.90 as the price of P/E is Fully Valued. There is not much upside for the share price. You may look at it another 1 to 2 Quarters results posted as the Genting Outdoor Theme Park and Komtar Project near for opening and will produce the Required Income by 2016.
Disclaimer and Declaration
The full content of the article is for educational purposes only and should not be used as investment recommendations. We are not responsible for all investment activities conducted by the participants and cannot be held liable for any investment loss. Examples of specific shares may be citied for illustration purposes.
Regards,
Humble Pie
We would like to share another IPO of late for your perusal:
The Broking House says:
(Extracted from research report published)
Fair Value (FV) for CYE 2015 = RM 1.09
Fair or not Fair?
Humble Pie view:
Look at OWG Prospectus Page 18:
Item: 3.6(i) says:
For Year End 30 June 2014 (FYE 201), enlarged issue and paid up capital of 185m shares which translates to a P/E 11.
Their latest Audited Report was 2014. Basically they are selling to you the company VALUE PEG at P/E 11 . As posted in my article prior before this:
Would you buy if I am telling you I am selling my company to you at 11x VS Fixed Deposits guaranteed by PIDM at P/E 18?
From this scenario, OWG is selling to you his company AT THE MARKET RATE. Not expensive and not cheap either. It's FULLY VALUED,
Closing Price @ 0.9 on 2/1/2015
= P/E 11.25
Utilization of Proceeds:
Komtar Project 60.5%
Business Expansion 26.2%
Working Capital 4.2%
Listing Expenses 9.17%
Money Raised for Business Purposes 86.7%
Means for every RM 1 raised, about RM 0.87 is for Business Purposes!
See the difference between OWG and EA?
BTW do you notice, Dato' Richard Koh still holding a stake of 69% post IPO?
He has much control on the company so to say.
Personally I will not buy at 0.90 as the price of P/E is Fully Valued. There is not much upside for the share price. You may look at it another 1 to 2 Quarters results posted as the Genting Outdoor Theme Park and Komtar Project near for opening and will produce the Required Income by 2016.
Disclaimer and Declaration
The full content of the article is for educational purposes only and should not be used as investment recommendations. We are not responsible for all investment activities conducted by the participants and cannot be held liable for any investment loss. Examples of specific shares may be citied for illustration purposes.
Regards,
Humble Pie
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