Chaswood

Chaswood: To resume trading. Co has completed its compliance placement of 10.5m shares at $0.30. Another 10.5m vendor shares were placed out as well.

Formerly known as Asia Silk Hldgs and is listing through an RTO. Co is focusing on casual dining on the ASEAN region with current operations in Msia and Sg. Co intends to also enter into Thailand and Indonesian mkts in the near future. Its brands include Malones, Italiannies, Teh Tarik Place in Msia and has obtained franchisee rights for brands such as Sg’s Paradise Dynasty in Thailand, Bulgogi Brothers,Watami and TGIF.

Co is currently suspended due to its reorganization after its RTO but is in the midst of conducting a placement exercise of 21.0m shares (10.5m vendor, 10.5m new shares) at $0.30 per share. Vendors (Asiason’s Posh Corridor and indiv Andrew Reddy) will retain a 84.7% stake. Net proceeds of $3.1m is expected to be raised to fund capex for new restaurants and refurbishment of existing restaurants.

Based on pro-forma end-Jun 11 figures, price is approx 36.6x P/E and 3.7x P/B based on post-placement no of shares. Peer Breadtalk trades at approx 14.0x P/E and 2.1x P/B.