AIO Finance Analysis

Closing date of application: 10 March 2008
Commencement of trading: 12 March 2008

Established in the 1967, Roxy-Pacific holdings is a Singapore-based specialty property and hospitality group.

Key Competitive Strengths:
They have been developing properties since 1967, and having experienced several cycles in the property market, have an established track record and reputation.
They are one of the more active developers in the Eastern area of Singapore, with an in-depth familiarity and a land bank of 30,422 sqm for 8 prospective developments there.

Key Risk Factor:
The risk of the Singapore Property Market bull run coming to a halt in the near term.

Financial figures
Intended IPO price: $0.30
No. of shares available for public offer: 7m
No. of shares available for placement offer: 126m
Total post invitation share capital: 636.56m
Dividend policy: No fixed policy.


Conclusion:
Based on its numbers, Roxy-Pacific is comparable smaller property developers which only focus on the Singapore property market such as Eastern Holdings, Sing Holdings, which typically trade at 10-12x PE. As such, Roxy-Pacific should trade at a Fair Value of $0.30 (IPO price) or 12x PE only.

Probability of getting allotted for the IPO - FAIR
(Prospectus here...)
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Source: Extraordinary Profits