Selected items from the combined statements of Comprehensive Income 

  (S$ 000)                                    Audited          Audited                                  Audited            Unaudited Pro Forma        Unaudited 

                                                        FP2015          FY2016                                FY2017                        FY2017                      1H2020 

Revenue                                            189                    3,679                                8,029                          12,287                    38,314 

Gross profit                                          31                        949                              1,761                                3,780                  12,926 

(Loss)Profit before     

  income tax                                        (2,677)                        (2,267)                        (3,383)                            (2,022)                      4,084 

Pre-Invitation EPS 

  (cents)                                                (1.22)                      (1.04)                        (1.55)                                  (1.03)                        1.36 

 

                                                    31 Dec 2015              31 Dec 2016              31 Dec 2017                                                    30 Jun 2020 

NAV per Share     

(cents)                                                0.38                                0.06                                        0.08                                                    2.90 

 

IPO Invitation Price 27.0 cents     

NAV 

  NAV  per Share based on the audited combined statement of financial position of our Group as at 31 December 2017: (a) before adjusting for the estimated net proceeds of the Invitation based on the pre-Invitation share capital of 218,704,993 Shares 0.08 cents     

IPO price premium over NAV:  33,650.0%  or  337.5 time of NAV 

 

EPS, PER, OPERATING CASH FLOW PRIOR TO IPO WERE NEGATIVE. 

1H2020      EPS  1.36    cent,  Op  Cash Flow per share:  2.54 cent 

In the Circular, they compare the valuation against Y Venture which had financial irregularities and also its 2019 FS had auditor& rsquo s matter of emphasis and disclaimer.  In 1H2020, it just made 200k. 

They could use UOB KH analyst report, which compare against comparable companies and after discounting for the start up nature of the company in 2018 -

25% discount = 4.2 price to sale - Forecast 2019 revenue (28million)= 45 cents

1H2020 = 4.2 x38/305=52 cents  (Assuming sale stays at 1H2020 and the whole mangement team goes into deep sleep)
Per UOB KH, the discount should narrow with the year in operations.

If you look a 1H2020, there were no substantial capital expenditures to support the growth in reenues.  The structure was built over the prior years.  Also, as detailed in the Company' s information, this is an Asset light company.