Stock profile
Key dates:
Public Sale Closing Date: March 23, 2017 12:00 Noon Expected Pricing Date: March 24, 2017
Public Notice Application Results: March 29, 2017
Listing date: March 30, 2017
Recommended person for exclusive insurance:
Dejian Finance Co., Ltd.
Statistical data summary:
Total number of shares offered: 250,000,000 shares (30% of shares to be sold) Proportion of publicly offered shares: 10.0%
Offer Price: HK$0.50 to HK$0.70
Estimated amount raised: $87.5 million to HK$122.5 million
Admission fee per lot: HK$3,535.27
Group Overview
SHIS Limited is a Singaporean contractor that mainly engages in local I) integrated building services, particularly the repair and installation of machinery and electrical (mechanical and electrical) systems, and II) construction and construction engineering services. Among them, the main source of revenue comes from integrated building services contracts from the Singapore Government. For the six months ended September 30 last year, the division's revenue accounted for 70% of the total revenue for the period.
The Group's management has extensive experience in the local integrated building services business. Among them, the founder and managing director started related business in 2005, which helped the Group improve its target investment success rate; in the three financial years from 2014 to the end of March 2016, the Group's integrated building services public bid rate ranged from 33% to 50%.
Industry Overview
According to the Ipsos report, overall construction demand in the Singapore public sector (including integrated building services and construction and construction) increased from SGD 3.7 billion in 2006 to SGD 13.2 billion in 2015, with a compound annual growth rate of 15.2%. Ipsos expects the overall construction demand of the Singapore public sector to reach SGD 20 billion in 2020, with a compound annual growth rate of 8.7% from 2015 to 2020.
Dangerous
valuations
The majority of the group's revenue comes from contracts granted by the Singapore Government Agency. In the three financial years from 2014 to the end of March 2016, revenue from such contracts accounted for approximately 75.6%, 85.2%, and 85.2% of total revenue. If the Singapore Government cuts or delays spending on integrated building services and the Group is unable to obtain sufficient business from other customers, the Group's business and financial situation will be significantly adversely affected.
According to the prospectus, it is assumed that the global sale has been completed on September 30, 2016, and that a share account of 1 billion shares will be issued as soon as the share sale is completed. The net value range for shareholders should have not been audited, adjusted, and merged for tangible assets is SGD 31.22 million to SGD 37.4 million, equivalent to the unaudited notes and adjusted net value range of each tangible asset is HK$0.17 to HK$0.21 (converted at the exchange rate of S$1.00 to HK$5.4954).