XMH Holdings IPO

Closing date for this IPO of XMS Holdings will be on 24 Jan. Hardly appealing this stock is.

Singapore-based XMH Holdings plans to raise S$25.2 million from its initial public offering on the Mainboard of the Singapore Exchange.

It is offering 100.95 million shares at 25 cents each.

Only 1.5 million shares have been set aside for the public, while the rest will be placed out.

XMH Holdings said it plans to use the net proceeds to fund the development of new premises or buy new premises for general warehousing and work areas.

It said the proceeds may also be used for the establishment of an assembly line for its in-house brand of power generating sets.

The offer will open at 9am on January 15 and will close at noon on January 24.

Trading is expected to start at 9am on January 26.

From Channel NewsAsia, "XMH to offer over 100m shares in IPO".


DIESEL engine distributor XMH Holdings is seeking to raise $18.85 million after expenses from its mainboard IPO, the first one registered with the Monetary Authority of Singapore this year.

XMH's offering comprises of 100.95 million invitation shares priced at 25 cents per share, of which 1.5 million shares are public shares.

About 7.5 million of the 99.45 million placement shares are reserved shares for independent directors, managers and employees. UOB is the manager, underwriter and placement agent for the IPO.

In FY2010 ended April 30, 2010, XMH's revenue was $74.5 million, up from $65.5 million the previous year.

About 90 per cent of XMH's 2010 turnover came from its distribution of diesel engines and power-generating sets, while 9.6 per cent came from after-sales services and trading.

While a majority of XMH's clients are shipyards and vessel owners buying marine diesel engines, XMH also sells power generators to hotel and building owners.

The company's order books as of Dec 15, 2010 stands at $72.4 million. Although the prospectus details a declining order book for XMH from $118.6 million in 2008, financial controller for XMH Johnson Yap told BT this has since 'normalised' and rebounded. 'Year 2008 was a boom time, where lead-time was short and there was tight demand and tight supply, so the order books were much fatter then. But the order book achieved in the first half of FY2011 is equivalent to the full year of 2010,' said Mr Yap.

XMH foresees diesel engine sales being buoyed further by its major market, Indonesia, in the coming year.

For one, there is increasing demand for vessels ferrying natural resources from the resource-rich nation. Also, the new Cabotage Principle kicks in from May 2011 prohibiting non-Indonesian flagged vessels from transporting cargo in Indonesian waters, which might prompt a wave of newbuild vessels.

The company wants to expand beyond its traditional Indonesian, Malaysian and Singapore markets. About $7 million of its net proceeds has been earmarked for expansion opportunities, which comprises Vietnam, Brazil and India.

An XMH Vietnamese representative office is in the pipeline.

Another $10 million of capital raised will be channelled towards acquiring new premises, which the company believes will cost about $22 million to acquire and develop. The new facility will help manage costs and efficiency for its bespoke propulsion and power-generating systems, said XMH's chief executive officer and chairman Elvin Tan.

These systems take about over a year from assembly to delivery, down from the initial two years. 'We want to ensure quality control for our value-added products with added oversight,' explained Mr Tan. 'We use a number of subcontractors currently, and want to bring our projects totally in-house.'

The public offer period will open at 9am today and close at noon, Jan 24. XMH shares will commence trading on Jan 26.

From Business Times, "XMH seeks to raise $18.85m from IPO".

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