IPO News - Global Premium Hotels Limited

What the market price huh ? 1 ki-Lot how much ?

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IPO News - Global Premium Hotels Limited

Postby ning7377 » Thu Apr 19, 2012 9:56 pm

Global Premium Hotels Limited (" GPH" or " Company" ) is offering 13m shares for public and 437m via placement at $0.26 each. IPO closing is on 24 April at 12pm. The Coy is a hotel operator and operates under the " Fragrance" or " Parc Sovereign" brands.

Pro-forma revenue for FY2010 was $44.2m and net profit was $19.9m. For the 9 mths in FY2011, the revenue was $38.9m and the net profit was $17.3m. The coy intends to distribute at least 80% of its net profit after tax for FY2012. The Coy intends to expand its rooms and into the Asia Pacific region in future under that 2 brands. (Personal opinion for the Grp will be for it to move up the value chain and create more Parc Sovereign hotels.)

The post IPO number of shares is 1 billion and the EPS using the enlarged share cap for 9 mths FY2011 is S$1.66 cts. Assuming the occupancy rate remains the same and we pro-rate it to the full year, the EPS will be around S$2.21 cts. That translate into a listing PER of around 11.76x. NAV per share is around 28.97c.

With visitors rate continue to remain robust and assuming the average occupancy rates remain the same, the net profit after tax will be around $22m. The dividend payout will be 80% x $22m = $17.6m. Dividend per share = Singapore 1.76 cents for FY2012. That translate into a yield of 6.7%. This will definitely be attractive to investors who wants a decent return for their cash. It is a pity this 80% payout is only for FY2012. The intent after FY2012 was not stated.

Coy basically is a spin-off of the hotel operations from the Fragrance Grp. The closest comparable listed on SGX are probably Amara, HPL, OUE, Hotel Properties Ltd etc but they are trading at very wide ranging PE multiples. Looking at the current IPO mkt sentiment, investors who 1 2 stag this counter could probably do so, he giving it a 2 chilli rating for its high yield for 2012 and a fair trading range of between 29 cts to 35 cts based on 13-16x FY2011 EPS.

The 2 things that I (he) don't really like is the " spin-off story" and that OCBC being the placement/underwriter. Track record by OCBC for IPO isn't great. Just FYI, the 26c price was at the lower end of the 25-28c book building by OCBC a few weeks back. Happy IPOing.

teeth53 thot: Well I personnally like OCBC, always great....so far so good...

Mkt capitalisation after the post-Invitation share capital of 1,000,000,000 Shares -- $260.0 million.
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Re: IPO News - Global Premium Hotels Limited

Postby ning7377 » Sat Apr 21, 2012 3:49 pm

Bidding closed 24 Apr 12 noon... MTL... try your luck on this counter and I am sure can have kopi $$ if you being alloted the shares... Big Bro Fragrance Group will definitely come in to support...

Target Opening price - $0.38 to $0.42

Bidded ...
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Re: IPO News - Global Premium Hotels Limited

Postby Arshavin » Sat Apr 21, 2012 4:42 pm

I m waiting for the ML Reits IPO. Wait till neck long long.
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