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2012’s Hottest IPOs

In 2012, Singapore’s Mainboard stock exchange welcomed 13 debutantes. Most did well, so let’s take a look at three IPOs that did the best.

Stock IPO Date IPO 19 June 2013 Gain
Civmec (SGX: P9D) 13-Apr-12 $0.40 $0.87 118%
Cordlife (SGX: P8A) 29-Mar-12 $0.495 $0.87 76%
Gaylin Holdings (SGX: RF7) 25-Oct-12 $0.35 $0.58 66%

We’ll start with Civmec, the biggest winner among all the IPOs and a company that supports the oil & gas and mining industries in Australia with engineering services. Despite more than doubling its flotation price, the company’s shares have actually taken quite a shellacking in the past six months by dropping 23%.

In the company’s first earnings release after its offering, it brought in quarterly revenue and earnings of S$97.1m and S$9.88m. A year later, Civmec’s latest quarterly top-line and bottom-line have declined to S$87.1m and S$8.53m, which could be a strong factor in the price-shellacking. But, management’s still confident of a strong performance in the oil & gas and mining sectors in Australia in the near-term, so things may yet turn around for investors who had bought in near Civmec’s 52-week peak of $1.29.

Cordlife’s up next. The company provides storage services for stem cells that come from cord blood or umbilical cord tissue and have operations in Singapore, Hong Kong, Australia, Philippines, India and Indonesia. Cord blood is used in the treatment of more than 80 diseases and in Singapore, customers of the company have utilised stored cord blood for successful medical treatments of leukaemia and cerebral palsy cases.

The company has been growing very quickly. For the 9 months ended March 2013, revenue grew by 12% to S$23.8m while profits jumped by 110% to S$9.67m. That probably explains why shares of the company are selling for 17 times historic earnings, which is 30% higher than the market’s Price-Earnings ratio (represented by Straits Times Index’s (SGX: ^STI) PE of 13).

Rounding up the trio’s Gaylin Holdings, a rigging and lifting solutions provider for the oil & gas industry. Demand for the company’s services have a wide geographical distribution, coming from Asia, Oceania, Europe, Middle East and Africa.

The company reported a 19% decline in annual profit to S$10.5m in its full-year earnings release last month. Despite that, management is “cautiously optimistic that the outlook on the oil and gas industry will be positive in the next 12 months”, which would bolster demand for the company’s services. Gaylin’s also looking to open its wallet for an acquisition, subject to regulatory approval, in the region of S$3.5m for Tianjin, China-based Lv Yang (Tianjin) Offshore Equipment, which does rigging and lifting equipment.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.