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1-5 of 5
debut price is flat at best.
if sell now will incur commission loss.
nothing to shout about.
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You are welcomed Jim2212. Up to you whether you are going for the IPO. Aspial is a well known brand and everyone knows their various businesses such as their jewellery business so it will attract much institutional and retail investors support and the IPO will likely see a rise in the share price of World Class Global upon debut. For me to consider this IPO the only reason is short term bet on its debut rise in share price and nothing more than that at the moment.
jm2212 ( Date: 18-May-2017 17:22) Posted:
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Excellent comment!
jeremyow ( Date: 18-May-2017 17:13) Posted:
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http://www.businesstimes.com.sg/companies-markets/aspial-to-spin-off-property-arm-in-catalist-listing
I attach here a link to an article from Business Times (BT) on World Class Global (WCG). From the article, World Class Global IPO is the spin-off from the property arm of Aspial Corp. The IPO is to raise funds for property acquisition and construction, and working capital needs.
From the BT article and preliminary prospectus by WCG, WCG was incorporated in 2013 and has been loss making since 2014 to now due to accounting policies that prohibit recognising revenues until projects are completed. No development projects were completed and handed over to purchasers in 2015 and 2016. But there will be two upcoming residential projects in Australia which already have been sold almost completely by 97% and 94% respectively with completion and handover to purchasers from 2018 to 2020. Another third residential project in Cairns Australia has started a recent launch in Oct 2016 and has been 9.6% sold at end Dec 2016. WCG also plan to declare a dividend up to 50% of its net profit for the financial year ending Dec 31, 2019.
I have reservations on this IPO as a long term investment due to currently there is no long term track record for one to look at for WCG as it was only incorporated in 2013. But it seems its current foray into developing the two Australian residential projects are successful so far which are mostly sold out. And there is a third Australian residential project now launching.
Investigating further into Aspial Corp' s recent few years business and financial performances has helped to throw more light on why the spin-off of WCG in an IPO is happening now. Even though Aspial Corp has managed to reverse a decreasing trend in its revenues and in 2016 saw an impressive jump in revenue, its operating and net incomes were seeing a decreasing trend of big drops in both operating and net incomes from 2013 to 2016. Its operating cashflows were mostly negative throughout the past decade thus having negative free cashflows also for most of the past decade.
What' s more worrying is that its financial leverage has been consistently very high since 2013 to now which stands around 5.52X. Aspial Corp is certainly tempering with very high leverage now. With such very high leverage it employs, yet it did not contribute to its return on equity (ROE). ROEs have decreased significantly from 34.05% in 2013 to 0.34% in 2016.
With a current cash strapped situation and still wanting to pursue further growth in its property arm, Apsial Corp certainly has to spin-off its property arm WCG in an IPO to raise funds to pursue its growth and expansion.
I will not be interested in this IPO save for only a short term bet on the potential rise in share price due to the IPO debut fever. Otherwise, I will rather wait for the business economics in both Aspial and WCG to be clearer and better before considering whether they are good long term high reward-low risk investment propositions.
I attach here a link to an article from Business Times (BT) on World Class Global (WCG). From the article, World Class Global IPO is the spin-off from the property arm of Aspial Corp. The IPO is to raise funds for property acquisition and construction, and working capital needs.
From the BT article and preliminary prospectus by WCG, WCG was incorporated in 2013 and has been loss making since 2014 to now due to accounting policies that prohibit recognising revenues until projects are completed. No development projects were completed and handed over to purchasers in 2015 and 2016. But there will be two upcoming residential projects in Australia which already have been sold almost completely by 97% and 94% respectively with completion and handover to purchasers from 2018 to 2020. Another third residential project in Cairns Australia has started a recent launch in Oct 2016 and has been 9.6% sold at end Dec 2016. WCG also plan to declare a dividend up to 50% of its net profit for the financial year ending Dec 31, 2019.
I have reservations on this IPO as a long term investment due to currently there is no long term track record for one to look at for WCG as it was only incorporated in 2013. But it seems its current foray into developing the two Australian residential projects are successful so far which are mostly sold out. And there is a third Australian residential project now launching.
Investigating further into Aspial Corp' s recent few years business and financial performances has helped to throw more light on why the spin-off of WCG in an IPO is happening now. Even though Aspial Corp has managed to reverse a decreasing trend in its revenues and in 2016 saw an impressive jump in revenue, its operating and net incomes were seeing a decreasing trend of big drops in both operating and net incomes from 2013 to 2016. Its operating cashflows were mostly negative throughout the past decade thus having negative free cashflows also for most of the past decade.
What' s more worrying is that its financial leverage has been consistently very high since 2013 to now which stands around 5.52X. Aspial Corp is certainly tempering with very high leverage now. With such very high leverage it employs, yet it did not contribute to its return on equity (ROE). ROEs have decreased significantly from 34.05% in 2013 to 0.34% in 2016.
With a current cash strapped situation and still wanting to pursue further growth in its property arm, Apsial Corp certainly has to spin-off its property arm WCG in an IPO to raise funds to pursue its growth and expansion.
I will not be interested in this IPO save for only a short term bet on the potential rise in share price due to the IPO debut fever. Otherwise, I will rather wait for the business economics in both Aspial and WCG to be clearer and better before considering whether they are good long term high reward-low risk investment propositions.
Boker asked me if keen to subscribe, anyone?