Swee Hong

Swee Hong: IPO was 1.5x over subscribed, including placement shares. Grp plans to raise $13.7m in net proceeds from its proposed listing on SGX. Post invitation, Swee Hong will trade at a 6.6x FY11 P/E. This is in contrast to market leader Yongnam, who trades at 5x trailing P/E. Other Peers are TTJ at 4.6x P/E, Hock Lian Seng at 3.8x, and OKP at 5.8x. We note that this will be the 3rd IPO by DMG in which they are the lead Manager, in the last 2 yrs. DMG Securities IPO Performances on 1st day: 08 October 2010 Yamada Green Resources IPO Px: 0.22 1st Day Close: 0.37 22 October 2010 Mun Siong Engineering IPO Px: 0.20 1st Day Close: 0.25 23 May 2012 Swee Hong Engineering IPO Px: 0.225 1st Day Close: ?