Neo Group

Neo Group: NRA Capital tips Subscribe to Neo Group's IPO, noting Euromonitor in April ranked the company as the number-one events caterer in Singapore, with a leading 9% market share of the events-catering industry, worth $306.6m. Believes the food catering industry is relatively stable and defensive, with sales able to grow between 5%-10% year-on-year, but net margins could be affected by higher labor cost, rental expenses and start-up cost of its new facility at Quality Road before it's fully operational. Notes Neo plans a 60% dividend payout ratio for the next three years, which implies and attractive 6%-8% dividend yield. The IPO is priced at $0.30.