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Last Thursday while I was golfing with some friends at Raffles Country Club, one of my flight mates was offered placement shares in the above IPO which was launched on December 10, 2009. He asked me whether he should take the placement at 25 cents a share.
Without a prospectus, we asked the broker to provide some basic financial information over the phone. The broker said the company had cash of about S$120mn post IPO compared to an IPO market capitalisation of S$127mn with no debt. Of this cash about S$21mn was advance payment. The company had been around for many years and was established in civil engineering work for government projects for more than 40 years. I said the numbers didnt make sense but if true the issue looked attractive.
I got my hands on the propsectus the next day and found that the financials diclosed to us by the broker were inaccurate (bottom line) always check what you are being told with the official documentation. Here is what I found out on going briefly through the prospectus: Read more...[caption id="attachment_3957" align="alignright" width="150" caption="Photo by chispita_666"][/caption]
Last Thursday while I was golfing with some friends at Raffles Country Club, one of my flight mates was offered placement shares in the above IPO which was launched on December 10, 2009. He asked me whether he should take the placement at 25 cents a share.
Without a prospectus, we asked the broker to provide some basic financial information over the phone. The broker said the company had cash of about S$120mn post IPO compared to an IPO market capitalisation of S$127mn with no debt. Of this cash about S$21mn was advance payment. The company had been around for many years and was established in civil engineering work for government projects for more than 40 years. I said the numbers didnt make sense but if true the issue looked attractive.
I got my hands on the propsectus the next day and found that the financials diclosed to us by the broker were inaccurate (bottom line) always check what you are being told with the official documentation. Here is what I found out on going briefly through the prospectus: Read more...
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Last Thursday while I was golfing with some friends at Raffles Country Club, one of my flight mates was offered placement shares in the above IPO which was launched on December 10, 2009. He asked me whether he should take the placement at 25 cents a share.
Without a prospectus, we asked the broker to provide some basic financial information over the phone. The broker said the company had cash of about S$120mn post IPO compared to an IPO market capitalisation of S$127mn with no debt. Of this cash about S$21mn was advance payment. The company had been around for many years and was established in civil engineering work for government projects for more than 40 years. I said the numbers didnt make sense but if true the issue looked attractive.
I got my hands on the propsectus the next day and found that the financials diclosed to us by the broker were inaccurate (bottom line) always check what you are being told with the official documentation. Here is what I found out on going briefly through the prospectus: Read more...
