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The 3 Best Performing IPO Stocks In Singapore In 2018

From the start of 2018 through to 7 August, there were 10 companies listed in Singapore’s stock market through an initial public offering (IPO).

Of the 10, most of them had stock prices on 7 August that were lower than their respective IPO prices. However, there are a few that have managed to perform well since their listing. Let’s check out the three best IPO performers thus far this year.

Position #1: Asian Healthcare Specialists Ltd (SGX: 1J3)

Taking the prime spot is Asian Healthcare Specialists (AHS). The company is made up of five senior and experienced orthopaedic medical specialists who operate at four clinics under The Orthopaedic Centre brand. Together, they provide a wide range of general and sub-specialised medical services in the orthopaedic, trauma, and sports fields. AHS was listed in April 2018.

Financially, AHS performed well for the six-months ended 31 March 2018. Revenue for the period inched up by 0.5% year-on-year to S$5.6 million while net profit jumped more than nine-fold to S$1.4 million. The company also declared a maiden dividend of 0.2 Singapore cents per share for the period.

The company’s shares last closed at S$0.285 each on Tuesday, up 23.9% from its IPO price of S$0.23. To know more about AHS and its IPO, you can head here.

Position #2: Koufu Group Limited (SGX: VL6)

Koufu, an operator and manager of food courts and coffee shops in Singapore, slots into the second spot. The company went public on 18 July 2018, with a listing price of S$0.63. On 7 August, Koufu’s shares closed at S$0.695 each, up 10.3% from the IPO price.

In an earlier article of his, my Foolish colleague, Jeremy Chia, talked about Koufu’s business and how the company will be using its IPO proceeds. The following is an excerpt about Koufu’s business from Jeremy’s article:

“In 2017, Koufu derived 48.6% of its revenue from outlet and mall management, with the remaining 54.6% coming from the 81 food stalls that the group operates in its own food courts and coffeeshops, its drink kiosks and full-service restaurants. It also opened one new food court and closed two underperforming ones during the year. This brings the total number of food courts that it manages to 47.

In addition, it manages 13 coffee shops, one hawker centre, one shopping mall and one food court overseas.”

Koufu’s listed peer, Kimly Ltd (SGX: 1D0), has also done well in terms of its share price performance. Kimly had an offer price of S$0.25 but last traded at S$0.34, up more than 30%. Kimly was listed in March 2017.

Position #3: Jawala Inc (SGX: 1J7)

The third company, Jawala, is underwater but is still the third-best performing stock market debutant. Jawala is a Malaysia-based forest resource company with a focus on industrial tree plantations situated in Sabah. Its primary business is the management of forestry resources, and the planting and extraction of timber. Jawala went public in June this year.

For its financial year ended 31 July 2017, the company turned in a net profit of RM1.7 million, on the back of RM12.0 million in revenue.

Jawala’s shares closed at a price of S$0.245 each on 7 August, down 2% from its IPO price of S$0.25. It can be said that Jawala’s IPO was more popular than Koufu’s as the former’s public offer tranche was 18.5 times subscribed while that of Koufu was only 17 times subscribed.

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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.