TA Crop: IPO debuts today. Total invitation/offering was abt 1.8x fully subscribed, with retail/public tranche of 2mil shares abt 50x over subscribed. The Placement Shares also attracted strong interest from institutional investors as well as high net worth individuals. Three investors, including funds under the discretionary management of Daiwa each took up more than 5% of the Invitation Shares.
We note that at IPO price of $0.28, valuation appears fair, based on historical P/E of 4.3x vs peer current average of 3.5x, and group intends to distribute 10% of its net profit as div for FY11-12, which may translate to a yield of 2.3%, assuming FY10 profit levels are maintained.
Overall freefloat is ard 26.2%, of which 98% has been privately placed and 2% for public balloting. See below for grp’s relative valuation according to IPO price.
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