JB Foods IPO

JB Foods IPO: Offer closes this afternoon, 12.00 pm and begins debut trading next Monday. Valuation is attractive, with JB Foods being offered at 5.9x FY11 P/E vs SGX-listed peers’ 15.3x. Closest rival Guan Chong trades at 7.9x P/E, dropping to 6.6x in FY12. For FY12, the group is proposing to distribute up to 30% of its net profit as dividends, which could translate to an estimated yield of 5.2%.