Singapore’s Big Loser for the Week: Versalink Holdings Ltd

Versalink Holdings Ltd (SGX: 40N) plunged 13% to close at S$0.24 on Thursday. With the Straits Times Index (SGX: ^STI) edging up by 0.2%, it makes Versalink a huge loser in the local market this week.

Versalink is involved in the design, manufacture, and supply of a wide range of systems furniture, among others. It debuted on our bourse on 24 September 2014 at an initial public offering (IPO) price of S$0.30. Analysis of the company can be found here and here.

As of 22 September 2014 12pm, which was the time the firm’s IPO subscription closed, there were 343 valid applications received for the 1.5 million offer shares made available to the public for subscription. In total, around 19.8 million shares were applied for by the public.

Total valid applications received amounted to approximately 55.3 million shares, including applications for placement shares of 35.5 million shares. With a total of 37 million shares available in all for subscription, the invitation was approximately 1.5 times subscribed.

Mr. Matthew Law, Executive Director and Chief Executive Officer of Versalink, was upbeat about the subscription of the shares. He said, “We are encouraged by the positive investor interest in our IPO. Today’s IPO sets the stage for Versalink to take our business into a new era. On behalf of the Board and management of Versalink, I welcome all new shareholders to the Group and look forward to their continued support in the years ahead.”

On the first day of debut, the firm’s share price closed up 13.3% to S$0.34. The hype sizzled out soon after because as of yesterday, the share price was 20% off the IPO price. Valuations, though, are undemanding as it is trading at around 5 times its historical earnings.

Versalink will be announcing its results for half year ended 31 August 2014 around 14 November 2014.

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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 Sudhan P doesn’t own shares in any companies mentioned.