Hafary Holdings IPO

Hafari Holdings IPO seems quite appealing at 20 cents per share. However, it's only through placement. Can't apply it using ATM. Darn!

The business model might not be attractive. But I like the fact that Hafari Holdings is quite established (it has a history of about 30 years and recognised as one of Singapore's leading suppliers of tiles). And at least for the last 3 years, their financial record seems quite solid (the past three financial years saw the group's revenue grow from $19.9 million in FY2007 to $30.8 million in FY2009. Net profit rose from $2.9 million to $3.4 million).

Hafary Holdings, a local supplier of tiles with almost 30 years of history, has launched its initial public offering of 32.5 million new shares at 20 cents each, in line with its proposed listing on the Catalist today.

The IPO of 32.5 million new shares represents 20% of Hafary’s enlarged share capital of 162.5 million shares. At 20 cents per share, the placement is priced at a historical price earnings ratio of 7.4 times, based on the group’s net earnings per share of 2.7 cents for FY2009 (year ended 30 June 2009) and pre-placement share capital of 130 million shares.

Collins Stewart is the sponsor and placement agent for Hafary’s listing on the Catalist. Listing and trading of the group’s shares is expected to start at on Dec 7.

Hafary says it intends to use the net proceeds of $4.8 million to fund possible acquisitions, joint ventures and/or strategic alliances when opportunities arise, and for the general working capital purposes of the group.

In the past three financial years, Hafary’s revenue grew from $19.9 million in FY2007 to $30.8 million in FY2009, representing an annual compounded annual growth rate (CAGR) of 24.4%. Profit after tax grew by a CAGR of 8.3%, from $2.9 million in FY2007 to $3.4 million.
Hafary says repeat customers accounted for about 76.7% of revenue in FY2009.

Since its establishment in 1980, Hafary says it has grown into one of Singapore’s leading suppliers of tiles with a head office, two showrooms and three warehouses occupying an aggregate built-in area of approximately 139,199 sq ft.

Through the group’s robust sourcing and procurement network, Hafary is able to carry a broad variety of tiles from China and Europe; and through economies of scale, has the ability to sell these to customers at competitive prices.

Hafary says it is eyeing Vietnam as a strong potential market, “given the country’s strong economic growth and growing affluence.”

From The Edge, "Tile supplier Hafary launches IPO of 32.5m shares at 20 cents each to raise $4.8m".

Homegrown tile supplier, Hafary Holdings, plans to raise net proceeds of S$4.8 million in an initial public offering in Singapore on Thursday.

It plans to list on SGX's Catalist board and is offering 32.5 million new shares at 20 cents each.

Established in 1980, Hafary is one of Singapore's leading suppliers of tiles with a head office, two showrooms and three warehouses.

The firm's customers include general walk-in customers at their showrooms, interior design or renovation companies, as well as project customers involved in major property developments who make bulk purchases.

The group plans to use all the net proceeds to fund possible acquisitions, joint ventures and strategic alliances when opportunities arise, and for general working capital.

Trading of the shares is expected to start on December 7. Collins Stewart is the sponsor and placement agent for the IPO.

From Channel NewsAsia, "Hafary Holdings to raise S$4.8m in Singapore IPO".

Singapore homegrown tile supplier Hafary Holdings has launched its initial public offering (IPO) for a Catalist board listing.

The company is offering 32.5 million new shares through placement at 20 cents each. This reflects a historical price-earnings ratio of 7.4, based on the group's net earnings per share of 2.7 cents for the financial year ended June 30, and its pre-placement capital of 130 million shares. The IPO shares represent 20 per cent of its enlarged share capital of 162.5 million shares.

Collins Steward is the sponsor and placement agent for the listing.

Application for the shares closes next Thursday.

Hafary, which has a history of about 30 years, is described as one of Singapore's leading suppliers of tiles. The past three financial years saw the group's revenue grow from $19.9 million in FY2007 to $30.8 million in FY2009. Net profit rose from $2.9 million to $3.4 million.

The company aims to pay 20 per cent of FY2010 net profit as dividends.

Hafary intends to use its expected net proceeds of about $4.8 million to fund possible acquisitions, joint ventures and strategic alliances, and for general working capital.

Although a significant portion of its business is local, Hafary is looking to expand into Vietnam as it 'shows strong potential', according to CEO Low See Ching.

'Given the country's strong economic growth and growing affluence, we believe that there is space for us to develop and expand there.'

Trading of its shares is expected to start on Dec 7.

From Business Times, "Tile supplier Hafary Hldgs launches IPO".

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