IPO (Rating 2 star out of 5 )
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Date
Open to apply: 18/11/15
Close to apply: 27/11/15
Listing date: 10/12/15
The counter
1 successful subscribed free 1 warrant
Fundamental
Market: Main Market
Price: RM0.50
EPS: -
P/E: -
Dividend policy: no dividend (Until finish acquisition)
Business
F&B business (brading & marketing, Manufacturing, Wholesale distribution)
Target Acquisition Market
Thailand, Vietnam, Philippines, Malaysia, Singapore, Indonesia.
After IPO Sharesholding
Raintree: 20%
IPO Investor: 80%
Director
Tunku Dato' Mu'Tamir: Chicken Rice Shop, Ayam Brand, Mafipro...
Dato' Tan And Meng: previous F&N CEO, Creador Senior Advisor...
Tan Eng Guan: Tchong motor(22 yrs), F&N...
Mohd. Shah Bin Hashim: Nestle legar manager...
Ng Ing Peng: CIMB group (director financial department, 12yrs)
Use of fund
Qualifying Acquisition (36 mth): 89.76%
Working Capital (36mth): 3.82%
Listing Expenses (30days): 3.99%
Remuneration of management team (36mth): 2.43%
Value Per Shares
No of shares: 1bil
IPO & Raintree fund: RM410 mil
Value per share before aquasition: RM0.39
Value per Warrant
Warrant exercise price: RM0.50
**warrant will be is premium (out-of-cash), if shares price below RM0.50
**warrant will be in-cash, if shares price above RM0.50
Conclusion
Good thing is:
1. F&B is a stable industry & safe haven at economic crisis.
2. Creador (Brahmal Vasudevan) invest in Red Sena. Creador is a private fund that having good record in investment (e.g. previous record is invets in IFCaMSC, GHLsys...before the counter move).
The bad things:
1. Is a SPAC counter, no fundamental can be measure.
2. Heavily depend on the exprience of director to get the acquisition.
Conclusions
Is a good high risk counter. But I believe price can be lower than IPO price. SPAC acquisition is impossible to complete in one or two day. Because is a risky counter, try not to hold warrant. Buy only the mother shares.
If success to take the IPO, sell the warrant at morning market open. If you not able to get the IPO, try buy at below RM0.50 ( the share come with warrant, high possibility price will below RM0.50 because of dillution of warrant).
***I see opportunities on this counter, but risk is high. Buy with cash that you willing to lose.