Cordlife IPO: Trading begins today.
Group's IPO 3.8x subscribed. Cordlife's 58m placement shares attracted some interest from institutional investors, with Coop International, Johnson Tan Chin Kwang, and Eastspring Investments each taking up more than 5% of the invitation shares. As for the 2m public offer shares, over 3,600 valid applications for 172.3m shares were received.
We note that 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%
No comments:
Post a Comment