$$$ KPO and CZM $$$: KPO's Virgin IPO (Kimly) After 4 Years!

Monday, March 13, 2017

KPO's Virgin IPO (Kimly) After 4 Years!

I have never participated in any IPO after investing for 3/4 years. The reason is because one cannot do that with SCB and I have been trying to resist all temptations in order to accumulate all my investment in one account. I no longer need to do that as I have achieved that goal last month!

I am sure by now everyone is familiar with our (SGX) very first kopi-tiam (it means coffee shop in Hokkien, not to be confused with the food court Kopitiam) IPO - Kimly Limited. I would love to invest in Kopitiam and Koufu too whenever I see those crowd during meals time...

This is beyond my comfort zone as I can no longer value it simply using its NAV, CNAV, PB, etc. and to participate in this IPO would mean that I am not buying this at a discount/safety margin. At its IPO price, the PB (Price to Book ratio) is 5.51 and the NAV is only 4.56 cents >.<"" However, I do like the fact that it is paying dividends. Assuming if its payout ratio is at 50%, I will be able to get 4% dividend yield :)

For a more comprehensive analysis on Kimly, do refer to the masters/shi-fu below:
- Singapore IPOs: Kimly Limited
- Forever Financial Freedom: Kimly Limited IPO - Should You Be Getting This?
- 10% Per Annum: Kimly IPO - Exciting Stuff?

I went through Singapore IPOs past analysis on F&B related companies:
1. Katrina Group Ltd (July 2016)
- IPO price @ $0.21, EPS 1.51 cents, dividend yield ~4% (60% payout ratio) but no public tranche
- Closed $0.34 on first day (64% gain), current market price $0.21. lol

2. Jumbo Group (November 2015)
- IPO price @ $0.25, EPS 2.7 cents, dividend yield ~2.5% (30% payout ratio) with 2 million public tranche
- Closed $0.34 on first day (36% gain), current market price $0.68 O_O
- The 2 million public tranche was > 300x subscribed!! Investors who apply for 50 lots will get a 3:99 chance and be allocated 8,000 shares.
This time round Kimly has 3.8 million public tranche. Assuming the same number of people are interested, it would be at least > 150x subscribed but there will probably be more people around now?? So 50 lots will get 16,000 shares or 4000 shares?? KPO maths not good, CZM say I cannot teach our baby maths in the future. Anyway, KPO has decided to participate and made his virgin IPO application. Is there such a thing as beginner's luck for IPO?

Good luck to myself and all the applicants! Huat ah! 

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