Thought of the day

I thank whatever gods may be / For my unconquerable soul. / I am the master of my fate / I am the captain of my soul. ~William Ernest Henley, Invictus

Government's promises are like the Ringgit, they depreciate with time.

Thursday, March 22, 2012

Placenta Juice

I have read about Cordlife few weeks or months ago and immediately develop an affection for this company. Why?
  • This guy controls 62% of Singapore's market share.
  • Has more than 35,000 units of cord blood banked in Singapore and Hong Kong.
  • There are only 7 authorised cord blood banks in China and the country only allows each province to have a single licensed cord blood bank. And this guy owns a 10% stake in a PRC cord blood bank in Guangdong, the only foreign entity to have an equity stake in a Chinese cord blood bank.
  • Most probably I will store my kids' cord blood with them someday.
This going-to-be new kid on the block public offer opens today and closes at noon on March 27, and will commence trading on SGX mainboard on March 29. Few points to note:
  • Intend to raise S$26.3mil net proceeds from its IPO, issue 60mil shares @ S$0.495: 58mil placement/2mil public.
  • June year end, will pay out at least 25% of FY2011's S$8.5mil NP as dividend.
Use of proceeds as follows:
  • S$16.6mil to expand market in Singapore and Hong Kong and fund acquisition in Indonesia, India and the Philipines.
  • S$3mil to renovate its HQ at Yishun to house 650,000 cord blood units, more than 10 times of its current capacity.
  • The rest for working cap, i reckon.
I wouldn't want to blab about the wonders of cord blood here as you can roll over to wikipedia or google it effortlessly. I am more interested in the maths:
Say I buy Cordlife's share at 49.5 cents now and somewhere in October it pays out the S$2.13mil dividend, so per share I will be receiving 3.55 cents, which is a pleasing 7.17% DY without considering its upsides. And if this guy sort of plunges after listing, I will be ready to pump in my reserve to buy up more - this will increase the DY.

Think I better head down to one of the POSB ATMs today to apply for some shares and keep my fingers crossed.

Disclaimer: This is not an invitation to buy or sell. I do not guarantee the accuracy or validity of the information above. Do your own due diligence before investing and invest at your own risk.


Gnu said...

First day trade shot up to 0.795, now stabilize at 0.71-0.73 range...

Gnu said...

Cordlife stablizing at 0.59....~ramas-ramas

Gnu said...

now it's 0.51... ~ramas-ramas