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Five IPOs last week average 3% gain for the week

Last week in Singapore, five initial public offerings (IPOs) raised a total of S$583 million through two Mainboard listings and three Catalist listings. At the end of the week, the combined market capitalisation of the five IPOs was S$1.6 billion. The benchmark, as represented by the Straits Times Index (SGX:^STI) with S$541.7 billion in market capitalisation ended the week unchanged at 3324.

The five IPOs consisted of Keppel DC REIT, iFAST Corporation, mm2 Asia, Huationg Global and UG Healthcare Corporation. The largest capital raising amongst the five was by Keppel DC REIT on last Friday afternoon, closing at $0.965 which was 4% higher than the initial offer price. The other Mainboard listing, iFAST Corporation was the best performing of the five IPOs, up 17% from the initial offer price as of the end of last week. The performances of the five IPOs over the week, in addition to exact listing dates last week are detailed in the table below.

Company SGX code Date of Listing 1st Day Gain Market Cap as of Friday S$M Percentage Change from IPO price as of Friday
KEPPEL DC REIT AJBU Dec 12 2014 4% 1205.88 4%
IFAST CORPORATION AIY Dec 11 2014 6% 284.41 17%
MM2 ASIA * 41C Dec 09 2014 0% 44.45 -14%
HUATIONG GLOBAL* 41B Dec 09 2014 15% 31.03 2%
UG HEALTHCARE CORPORATION* 41A Dec 08 2014 16% 43.25 7%

*Catalist listing, data as of 12 December 2014

This brings the total number of IPOs in the 2014 year to 12 on the SGX Mainboard and 18 on Catalist. This does not include two Global Depository Receipts, the Maiwai Fund, new fixed income listings or six Reverse Takeovers (RTOs). The total amount of capital raised by these 30 IPOs was S$3.4 billion. The average performance across all 30 IPOs to the Friday close was 11%. However please note the 375% gain of TalkMed skews the average. The median performance of the IPOs was unchanged at neither a gain nor a loss.

Last week’s IPOs represent a wide range of businesses – healthcare, construction & engineering, media, online financial services and data center property assets. The businesses of last week’s IPOs are as follows.

Keppel DC REIT 

Keppel DC REIT is a Singapore real estate investment trust established with the investment strategy of principally investing, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes as well as real estate-related assets, with an initial focus on Asia-Pacific and Europe. Keppel DC REIT’s property portfolio includes two data centres in Singapore, two data centres in Australia, one data centre in Malaysia and three data centres in Europe.

iFAST Corporation

iFAST Corporation is an Internet-based investment products distribution and administration platform, with assets under administration of S$5.13 billion as at end-September 2014. Incorporated in year 2000 in Singapore, iFAST Corporation is a provider of a range of services, including investment administration and transactions services, research and trainings, IT services and backroom functions to banks, financial advisory firms, financial institutions, multinational companies, as well as investors in Asia. The Group is also present in Hong Kong, Malaysia and China.

Huationg Global

Huationg Global is principally engaged in the provision of a full range of civil engineering services and inland logistics support, and is also involved in the sale of construction materials, including the manufacture and supply of Liquefied Soil Stabiliser and the sale of Recycled Concrete Aggregate. In addition, the Group has been involved in the civil engineering works for numerous large infrastructural construction projects in Singapore including certain stations of the Downtown Line MRT and Circle Line MRT, the Kallang-Paya Lebar Expressway and the Marina Coastal Expressway.

mm2 Asia

mm2 Asia is a producer of movies and TV/online content, providing services that cover the entire filmmaking process including securing financing, producing and distributing as well as securing advertising and sponsorship. Headquartered in Singapore, mm2 Asia also has a presence in Malaysia, Hong Kong, Taiwan and the PRC through the Group companies and/or strategic working partnerships. Over the years, mm2 Asia has produced or co-produced and/or distributed more than 20 movies.  Some of its notable productions include ‘Ah Boys to Men’, the highest grossing local production in Singapore in 2012; ‘Ah Boys to Men II’; and the ‘Lion Men’ series.

UG Healthcare

UG Healthcare is a manufacturer, processor and distributor of gloves including surgical, vinyl and cleanroom gloves. It also distributes face masks and other disposable medical items. Founded in Negri Sembilan, Malaysia, UG Healthcare has distribution channels in China, Germany, Nigeria, UK and US.

  STI maintained 8% YTD total return last week

As noted above, the performance of the STI was essentially flat last week – which meant the 8% year to date total return discussed last week was maintained. The five best performing STI constituents last week were Singapore Airlines Ltd (SGX:C6L), Singapore Exchange Ltd (SGX:S68), Singapore Telecommunications Ltd (SGX:Z74), DBS Group Holdings Ltd (SGX:D05) and City Developments (SGX:C09).

Also last week, Singapore Press Holdings (SGX:T39) paid a total of 14 cents in dividends which was made up of an 8 cent final dividend and a 6 cent special cash dividend. This took the gross 12 month dividend yield of Singapore Press Holdings to 5.0% an indicative yield (which does not include the 6 cent special dividend) to 3.6%.

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