{"id":3140,"date":"2017-11-27T07:29:14","date_gmt":"2017-11-26T23:29:14","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=3140"},"modified":"2017-11-27T01:12:01","modified_gmt":"2017-11-26T17:12:01","slug":"no-signboard-ipo-heres-a-5-minute-digest","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hant\/no-signboard-ipo-heres-a-5-minute-digest\/","title":{"rendered":"No SignBoard IPO: Here&#8217;s a 5 minute Digest"},"content":{"rendered":"<p>No Signboard Holdings Ltd is going head to head with \u00a0<strong>JUMBO Group Ltd<\/strong>\u00a0<a href=\"https:\/\/www.fool.sg\/company\/JUMBO+Group+Ltd\/?ticker=SGX-42R\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">(SGX: 42R)<\/a>\u00a0as it preps itself for a public listing.<\/p>\n<p>Here&#8217;s a quick 5 minute digest on the company:<\/p>\n<h2>No SignBoard IPO Details<\/h2>\n<p>The IPO will close at <strong>noon<\/strong> on 28 Nov, and trading will begin 30 Nov.<\/p>\n<p>A total of 65.7 million shares will be on offer during the IPO period at a price of <strong>S$0.28 a piece<\/strong>. 2.5 million shares will be for public subscription while the remaining 63.2 million shares will be placed out.<\/p>\n<p>There are several cornerstone investors taking up on the placement shares of 59,265,500 shares, which include:<\/p>\n<ul>\n<li>Asian Opportunities Absolute Return Master Fund,<\/li>\n<li>Goi Kok Ming (COO of GSH Limited, son of Popiah King)<\/li>\n<li>JPMorgan Asset Management (Singapore)<\/li>\n<li>LB Asset Management<\/li>\n<li>Lion Global Investors &amp; more<\/li>\n<\/ul>\n<h2>No SignBoard Limited Profile<\/h2>\n<p>The businesses can be classified into 3 main segments \u2013 restaurant, beer, and ready-meal.<\/p>\n<p><img decoding=\"async\" class=\"alignright size-full wp-image-3142\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2017\/11\/No-Signboard-IPO-business-segments.jpg\" alt=\"No Signboard IPO business segments\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>We won&#8217;t delve into the restaurant biz since most people are familiar with it.<\/p>\n<p>The <strong>beer business<\/strong> was <a href=\"http:\/\/www.straitstimes.com\/lifestyle\/food\/fancy-a-pint-of-chilli-beer\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">acquired<\/a> only in June 2017 where it owns\u00a0<em>Draft Denmark<\/em>\u00a0brand of premium beers and they are sold at over 150 points of sale in our country.<\/p>\n<p>Here is an excerpt from Mr Lim where he hopes to push the boundaries of flavours in beers:<\/p>\n<blockquote><p>&#8220;Like running a food business, I want to come up with a menu of many interesting beer flavours including fruit, coffee and chilli. Instead of the old-school style of going with a single type of beer, the new beers will come in all sorts of colours and flavours.&#8221;<\/p><\/blockquote>\n<p>Besides making inroads in the beer industry, No Signboard Seafood is diversifying its business into the\u00a0<strong>ready-meal segment<\/strong>.<\/p>\n<p>In April 2017, it started The Ma2 (Mama) Shop, a cluster of vending machines that offers\u00a0<em>No Signboard Seafood<\/em>-inspired dishes such as chilli crab spaghetti, Hokkien mee and nasi briyani in 7 locations including Tampines and Holland Drive.<\/p>\n<h2>Use of Proceeds<\/h2>\n<p><img decoding=\"async\" class=\"alignright size-full wp-image-3145\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2017\/11\/No-Signboard-IPO-use-of-proceeds.jpg\" alt=\"No Signboard IPO use of proceeds\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>The listing will raise gross proceeds of S$21 million, with $2.3 mil going towards listing expenses.<\/p>\n<p>No Signboard Holdings plans to use the remaining proceeds mainly for:<\/p>\n<ol>\n<li>Establishment of new chain of casual dining restaurants (23.8%)<\/li>\n<li>Development of beer business (47.6%)<\/li>\n<li>Development of ready meal business (9.5%)<\/li>\n<li>General working capital purposes (8.0%)<\/li>\n<\/ol>\n<h2>Financial Highlights<\/h2>\n<p><img decoding=\"async\" class=\"alignright size-full wp-image-3144\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2017\/11\/No-Signboard-IPO-financial-highlights.jpg\" alt=\"No Signboard IPO financial highlights\" \/><\/p>\n<p>Revenue for the company has been declining over the past 4 years. The same can be said for its net profits if you exclude a one-off $1.1mil coming from <em>\u201cTermination of distribution agreement\u201d.<\/em><\/p>\n<h2>Our Take on No Signboard IPO<\/h2>\n<p data-default=\"Enter your text here...\">Overall, we are neutral about this IPO for its flipping potential and positive on its long-term potential.\u00a0Our thoughts are as follows:<\/p>\n<h3 data-default=\"Enter your text here...\"><strong>For flipping: Neutral<\/strong><\/h3>\n<p data-default=\"Enter your text here...\">Price of $0.28 is reasonable at 13.9x P\/E ratio. Assuming we use <a href=\"https:\/\/www.smallcapasia.com\/res-ipo-5-things-investors-should-know-about-it\/\" target=\"_blank\" rel=\"noopener\">RE&amp;S Holdings IPO<\/a> of 18x P\/E, it will be around $0.36. 1 lot will nett you $80 bucks.<\/p>\n<p data-default=\"Enter your text here...\">We may see a pent-up demand from the retail investors since only 2.5 million shares are issued to the public. However,\u00a0the Cornerstone Investors are not subject to any lock-up restrictions in respect of their shareholdings. Thus, this may result in a huge sell pressure from the funds.<\/p>\n<p data-default=\"Enter your text here...\">I personally reckoned that it will not go up too much since the financial numbers are painting a poor picture of the company too.<\/p>\n<h3 data-default=\"Enter your text here...\"><strong>For long-term holding: Negative<\/strong><\/h3>\n<p data-default=\"Enter your text here...\">To be honest, I feel that No Signboard is spreading itself too thin.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignright  wp-image-3146\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2017\/11\/draft-denmark-beer-no-signboard-ipo.jpeg\" alt=\"draft denmark beer no signboard ipo\" width=\"216\" height=\"288\" \/><\/p>\n<p data-default=\"Enter your text here...\">For the Draft Denmark Beer, it is widening the beverage&#8217;s distribution in Singapore by partnering local\u00a0beverage company Yeo&#8217;s to make its debut in major supermarket chains including Giant and FairPrice. Maybe i should go buy and try it out&#8230; by reviews (https:\/\/untappd.com\/b\/draft-breweries-denmark-aps-draft-denmark-fresh-lager\/1138349) (https:\/\/www.burpple.com\/dishes\/1054970\/draft-denmark-fresh-lager) were &#8220;meh&#8221;&#8230;<\/p>\n<p data-default=\"Enter your text here...\">Sales at core restaurant segment on a downward trend &#8211; should be due to fierce competition, similarly as other F&amp;B operators.<\/p>\n<p data-default=\"Enter your text here...\">In addition, the company has not made clear on the new Chinese restaurant&#8217;s dining concept too. They mentioned of the following:<\/p>\n<ul>\n<li data-default=\"Enter your text here...\">Intend to focus on satellite towns and residential areas to appeal to a different customer profile that is typically younger and family oriented.<\/li>\n<li data-default=\"Enter your text here...\">Exploring potential strategic dining locations, such as Jurong East and Punggol, where our target customer segment is clustered.<\/li>\n<li data-default=\"Enter your text here...\">Planned of 2\u00a0new outlets to be set up in the 2nd\u00a0half of 2018.<\/li>\n<\/ul>\n<p>JE and Punggol has tons of dining establishments already. It will require a lot of marketing to attract diners to begin with.<\/p>\n<p>Numbers doesn&#8217;t look enticing too. Based on expected 1.7 cents of EPS FY2017 and 30% dividend payout ratio, dividend yield only amounts to 1.8%. And this is including a one-off gain.<\/p>\n<p>To sum up, it seems that the management is acknowledging that its core biz is stagnant now and eagerly trying to venture into many different areas. That equates to much more time, effort &amp; capital required for each segment and the firm risks being not able to focus on what&#8217;s important.<\/p>\n<p><!--more-->We\u2019ve released our 3 HOT growth stock picks which could skyrocket &gt;100% by the end of 2017. History has shown that getting in early on a good idea can often pay big bucks \u2013 so don&#8217;t miss out on this moment.<\/p>\n<p>Simply click [thrive_2step id=&#8217;2090&#8242;]<strong><em><u>here<\/u><\/em><\/strong>[\/thrive_2step] to receive your copy of our brand-new <strong>FREE<\/strong> report, <strong><em>\u201c3 stocks poised for explosive growth\u201d<\/em><\/strong>.<\/p>\n<p>Do <a href=\"https:\/\/www.facebook.com\/SmallCapAsia\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><strong>Like us on Facebook<\/strong><\/a> too as we share the latest investing articles and stock ideas for you!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>No Signboard Holdings Ltd is going head to head with \u00a0JUMBO Group Ltd\u00a0(SGX: 42R)\u00a0as it preps itself for a public listing. Here&#8217;s a quick 5 minute digest on the company: No SignBoard IPO Details The IPO will close at noon on 28 Nov, and trading will begin 30 Nov. A total of 65.7 million shares [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[54,58],"tags":[69,339],"class_list":["post-3140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo-launch","category-singapore-stocks","tag-ipo","tag-no-signboard-ipo"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/posts\/3140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/comments?post=3140"}],"version-history":[{"count":0,"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/posts\/3140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/media\/3141"}],"wp:attachment":[{"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/media?parent=3140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/categories?post=3140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hant\/wp-json\/wp\/v2\/tags?post=3140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}