EuroSports Global

EuroSports Global: Trading debut at 9am today after IPO tranche of 80m shares at $0.28 apiece was 2.9x subscribed; Issue price translates to a valuation of 10.9x FY13 P/E and 3.8x P/B. Notable investors include Han Seng Juan with 6m shares (2.3% of enlarged share base) and both Kwek Leng Joo and Lim Soon Fang with 4m shares each (1.5%). Eurosports is the automotive dealer for new and pre-owned luxury brands such as Lamborghini (since 2001), Alfa Romeo (2004) and Pagani (2012), as well as customised automobiles supplied by Touring Superleggera. It also distributes the deLaCour line of luxury watches. In addition, the group provides after-sales services, including sales of automobile parts and accessories, and has an automobile leasing business. Market watchers believe that new regulations introduced last year, such as higher additional registration fees (ARF) under a new tiered tax rate, and new auto loan financing restrictions, have crimped the demand for cars. The luxury segment has been hardest hit, in terms of absolute price increase to the consumer.