User Research/Opinions   

Netlink Trust IPO

I think possible.

MarcPh      ( Date: 11-Jul-2017 10:57) Posted: Will there be any extraordinary dividends for Singtel for the Netlink Trust IPO and $1.1bio debt repayment from Netlink Trust investshare      ( Date: 05-Jul-2017 20:54) Posted: The higher the better for SingTel shareholders

 

Will there be any extraordinary dividends for Singtel for the Netlink Trust IPO and $1.1bio debt repayment from Netlink Trust

investshare      ( Date: 05-Jul-2017 20:54) Posted: The higher the better for SingTel shareholders. chengwh1      ( Date: 05-Jul-2017 18:32) Posted: Should know the IPO price by coming Friday morning,.... then we decide if worthy to apply or not. I suspect the price will be in the upper  section of the price range, ie 92 Cts

 

Studied the prospectus closely,... the price need to drop to at least 70 cts per unit for this counters to be ' yield-valuable' ,.... Shorting it down after opening ?

 

cash vs debt scares me a little though loan taken is quite stable.   Y-o-Y net income forecasted to drop.   PE based on 2017 is higher than its peers.

 

Earlier, Netlink Trust projected to raise up to S$2.7bio. Of which, $1.1bio is for debt repayment to Singtel and being a 100% shareholder, Singtel had a $60mio dividend based on last Annual Report.
Now, at S$0.81 per share, Singtel offloaded 75% stake in Netlink trust for S$2.3bio ($400mio less). Netlink Trust' s market cap upon listing is appx $3.1bio + potential overallotment option.

Singtel has a $63bio market cap. $400mio is almost equivalent 0.6%. Singtel already dropped 0.5% on last trading day, assuming insiders priced in the IPO price.
So, let' s take clue from the market
- If Singtel drops further by 1% on Monday, it is likely that the offered IPO price is fair.
- If Singtel stays unchanged or higher on monday, it hints that $2.3bio for 75% stake in Netlink Trust is a windfall for Singtel.

 

 

May have opportunity to short 

 

My first ipo, any seniors can share whether this is a good buy?

Was reading this website (which has a preliminary prospectus) and have some questions:
http://www.smallcapasia.com/all-you-need-to-know-about-netlink-trust-ipo/

1) Earnings per unit was 1.04 in 2016, 2.06 in 2017, projected 1.14 in 2018, 1.70 in 2019
At $0.81 per unit, this is a P/E ratio of 39.3 in 2017 if no price change in 2018, P/E ratio = 71 (S$0.81/0.0114)
What companies can i compare this ratio to, is this high for this industry?
2) 2018 Dividend was calculated as 2.93cents. How is this possible/sustainable given an expected earning of 1.14?
3) Netlink trust currently has a debt of 1.6 billion? Will this be paid off with funds from the IPO, or has this debt been calculated into the share price/future earnings projection?

Dunno if i have my numbers right, can anyone with knowledge of the matter confirm or correct?

 

$0.81 according to Reuters
https://www.reuters.com/article/us-netlink-trust-ipo-idUSKBN19S1H6

investshare      ( Date: 05-Jul-2017 20:54) Posted: The higher the better for SingTel shareholders. chengwh1      ( Date: 05-Jul-2017 18:32) Posted: Should know the IPO price by coming Friday morning,.... then we decide if worthy to apply or not. I suspect the price will be in the upper  section of the price range, ie 92 Cts

 

Yes bro,.... can someone share the prospectus here please ? Or a link please ? Thank you,....

 

The higher the better for SingTel shareholders.

chengwh1      ( Date: 05-Jul-2017 18:32) Posted: Should know the IPO price by coming Friday morning,.... then we decide if worthy to apply or not. I suspect the price will be in the upper  section of the price range, ie 92 Cts. investshare      ( Date: 05-Jul-2017 09:41) Posted: Should announce by now

 

Should know the IPO price by coming Friday morning,.... then we decide if worthy to apply or not. I suspect the price will be in the upper  section of the price range, ie 92 Cts.

investshare      ( Date: 05-Jul-2017 09:41) Posted: Should announce by now? ganyun      ( Date: 03-Jul-2017 09:46) Posted: IPO opens on 10th July to 17t

 

lousy sentiment in sgx,,,
ipo always makes offeror rich..
too rich for me..billions in the offer...no fighting n elbowing to get shares means..no thanks

 

Should announce by now?

ganyun      ( Date: 03-Jul-2017 09:46) Posted: IPO opens on 10th July to 17th SgTrader17      ( Date: 02-Jul-2017 23:13) Posted: When will this IPO close? Is it already out or Not yet? Any valuations on it? Kindly share.

 

Maybe those investors eyeing this IPO wants to unload immediately upon listing, hoping to make a quick buck when this counter goes to board. Nobody actually wants to keep this stock,....

I recalled the experiences gained in my observation of Manulife UR REIT last year,... book-building at 83 US Cts,  listed, then DROPPED to 79 US  Cts on the first few days. I have one regret though from that experience - I did not load-up at 79 US Cts last year,...  I kept observing and observing,.... today, we know where Manulife US REIT is at,.....

 

As I keep surfing the net for more infos about this IPO,... I re-read again the posting below. I saw only 4% yield at the IPO price,... and IMDA reviews NetLInk' s prices every three to five years,... hmm, really doesn' t appeal at all,.... frankly, why do publications everywhere keeps saying this IPO is hot, hot, hot ?????????

MarcPh      ( Date: 27-Jun-2017 18:19) Posted: IMDA reviews Netlink Trust' s wholesale prices https://www.telecompaper.com/news/imda-reviews-netlink-trusts-wholesale-prices--1195211 IMDA reviews NetLink Trust' s prices every three to five years & ldquo to ensure its reasonableness and cost efficiency. IMDA said most of NetLink Trust' s wholesale prices to the industry will be reduced from their current levels. https://www.imda.gov.sg/about/newsroom/media-releases/2017/imda-finalises-review-of-prices-in-netlink-trusts-interconnection-offer Switching a fibre-internet ISP in Singapore can take 4-8 weeks for businesses in Singapore. Quote - NetLink Trust, which announced Monday the government has cut most of its prices, has been discussing a potential annual dividend yield of about 4 percent to 5 percent, the people said, asking not to be identified because the information is private. https://www.bloomberg.com/news/articles/2017-05-09/netlink-said-to-brief-analysts-on-s-2-billion-ipo-as-fees-cut

 

i concur.

1. I heard books-building began. Based on the yields and revenue projection, one can easily find Bonds, Reits or business trusts, of similar returns. If we want a clearer picture, enter after the first or second AGM but market will price-in everything for you by then.
2. Whether it trades at a premium or discount against IPO price, it depends whether they price at at 80ish or 90ish.
3. Given similar business/dividend model, I will choose HPH Trust (as they had sufficient written-off their assets in recent years). This company faces significant asset amortisation and some pricing is at the mercy of IDMA.
 

chengwh1      ( Date: 02-Jul-2017 21:51) Posted: For this stock,... I think it' s better to let it list first, then only buy when the time is right !

 

IPO opens on 10th July to 17th

SgTrader17      ( Date: 02-Jul-2017 23:13) Posted: When will this IPO close? Is it already out or Not yet? Any valuations on it? Kindly share.

 

they wish to earn revenue by providing data services. data is the new oil

enjoylife77      ( Date: 30-Jun-2017 09:20) Posted: Why do Telco invest heavily in 4G or 5G for no revenue return from WhatsApp or Wechat or Skype?

 

lousy stock but manipulators will pump this stock to show that it is not a lousy stock 

 

When will this IPO close? Is it already out or Not yet?

Any valuations on it?

Kindly share.