Cordlife IPO: IPO Public offer closes tomorrow, 27th Mar at 12 p.m and begins trading this Thursday.
Formed in 2001, Cordlife Group is among the 1st cord blood banks in Asia, and the largest in Singapore (62% market share) and 2nd largest in HK (28% market shares). Fundamentals appear to be driven by an expected strong penetration rate and group’s technological and clinical leadership, cementing its first mover advantage in Asia.
Post IPO, Cordlife will trade at 13.6x FY11 P/E and 1.7x P/B, with its above-average valuations justified by a superior ROE and scarcity premium as a healthcare play. Cordlife has committed to distribute up to 25% of its FY11 and FY12 net earnings as dividends, which translates to a dividend yield of 2.0%.
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