Gayling Holdings Limited Offer Price: $0.35
Offer Size: 110m new shares
Public Tranche – 5m shares
Placement Tranche – 105m shares
NAV per share (post-IPO): S$0.172
Historical PE: 8x (FY12)
Market Cap (post-IPO): S$143.5m
Open: 17 October 2012
Close: 23 October 2012, 10.00am
Trading: 25 October 2012, 9.00 a.m. (on “ready” basis)
Introduction
Gaylin Holding Limited (Gaylin) is one of the largest Singapore-based
Rigging and Lifting Solution Providers to the Global Offshore Oil and
Gas industry. Gaylin supply and manufacture rigging and lifting equipment
and also provide a wide range of engineering services to our customers who
require customisation or manufacturing of products specific to their requirements.
Such engineering services include the design, fabrication, testing and
certificationof rigging and lifting equipment. The rigging and lifting equipment
comprises a wide range of products such as heavy lift slings and grommets,
wire rope slings, crane wire, mooring equipment and related fittings and accessories.
The company operate mainly in the global offshore O&G industry which
demandshigher precision specifications in our products. Gaylin is a one-stop
solutions provider for our customers. The company also supply a wide range of
ship stores and equipment to ships and oil rigs. Gaylin primarily based in
Singapore and have an operating subsidiary in Vietnam, and a subsidiary in
Malaysia which is expected to commence operations in December 2012.
The company sales and distribution markets comprise mainly Asia, Oceania,
Europe, the Middle East and Africa.
Financial Highlight
Dividend Policy
Use of Proceeds
Company Expansion
My personal view
Gaylin operate in a very highly competitive environment and face keen
competition from new and existing competitors based in Singapore
and elsewhere. Its closest competitors include 1.) Franklin Offshore
International and 2.) KTL Global Limited. I wish to highlight about
KTL Global Limited which is also listed in SGX. KTL Global listed
in 2007 with the IPO price of 28cts and its last traded price is about
half of its IPO price at 14.3cts I am not saying that Gaylin will ended
up the same as KTL Global but the market can be very choosy and
merciless to those weaker party.
If you have been reading my the other blog, you will know that
I like the Offshore Oil & Gas and Marine sector a lot. You should
have notice that my recent biggest winners call is STX OSV and
the 2 Es, Ezion and Ezra. Recently, just base on my own observation,
I notice that those "cheaper" IPOs recently are having very good
run-up posting respectable gains and profits for the retailers willing
to risk the $2 application charges. I believe that Gaylin will be
another bright spot when it debuts on the 25th and with only 5 million
for the public, it will be another Toto drawing for the investor.
This is a IPO that you can't miss, so throw in the $2 and hope for
the best. At most, you will lose a kopi and you can gain a few
buffet if you can get it.
Lastly, I wish to point out that there is another IPO application
Dynasty Reit closing on 24 October this Wednesday. You simply
can't use any returned money from Gaylin IPO to apply for the
Reit. Looking at the current market sentiment, I would suggest the
readers to concentrate on Gaylin and either give the Dynasty Reit
a miss or put in a small application, but its debut may not be favourable.
