Easy Money New Issue Review : Heeton Holdings
NEW ISSUE: HEETON HOLDINGS SGD 2 YR ISSUE
Issuer: Heeton Holdings Limited
Status: Direct, unconditional, unsubordinated and unsecured Notes
Format: Reg S, S274 & 275 of Singapore SFA
Tenure: 2 Years
Issue Size: TBD
Payment: Semi-annual, actual/365 (fixed)
Details: SGD250K/Multicurrency Debt Issuance Programme/Singapore Law/CDP
Comparable Bonds :
Hiap Hoe 4.75 2016 – 100.45, 4.57%
Aspial 5 2016 – 101.35, 4.46%
Oxley 4.75 2015 – 100.85, 4.28%
ps : who says Oxley is 100.85 when they just reopened 2 days ago at 100 ?? I like to know where you are seeing bids at please ?
“Established in 1976 and listed on SGX since Sep 2003, Heeton is primarily engaged in property development and property investment. In 2011, Heeton expanded into the hospitality sector with its investment in Mercure Hotel Pattaya, located in
Pattaya, Thailand, the person said.” Source : Bloomberg
It is the name of the game. If you can borrow, just max it out.
This bond is a sure sell. Why ?
Because they are paying a high commission for the private and retail bankers to get it off or you should be seeing a coupon of 5.8% ?
Small company with market cap SGD 175 mio which is all about valuation, I suppose. And its income statement is a good lesson for financial analysis.
Here is a company with an erratic revenue stream with 2011 being their best year for revenues. Their operating income in 2012 is about half of 2011 but their bottom line looks fantastic for this Net Non Operating Gains. Shareholders and bondholders certainly do need ALOT of this Net Non Operating Gains going ahead if market sales slow.
On the bright side, Singaporeans are snapping up overseas properties in London and Bangkok so its a good sign that demand is healthy. Reports out of Asiaone and PR Newswire today.
Verdict : I don’t know what to say.
Received email on Heeton 5.6 from my banker. Indicative price to client at 100.5% inclusive of brokerage.
I am hearing they already got it at 99.60 which means they are making 0.9 cts from you.
In coupon terms, it means you are losing out 0.48%.
Good luck !
I think interested buyers should bid at 99.80 in the secondary market..
Strange. I applied thru my RM for S$ 500K (at par plus 0.25% brokerahe) ………….. and got zero allocation!! Interesting – from the above posting if I interpret it correctly – that we should have some confidence that it will be trading below par in the secondary market.
Secondary market 100.25/100.65 today
Thank you J Tan – helpful. Do you know what volume they managed to put away? And if it was over-subscribed?? (I’m still a bit puzzled why I didn’t get any allocation). Cheers
I did not go for the IPO allocation at 100.5.Was definitely oversubscribed but have no info on the volume.
According to Reuters, the issue amount is SGD75 million, issue price par, reoffer price par, spread 508.7 basis points.
I am looking at possibly buying 1 or 2 lots at around par to balance my bond portfolio which are maturing in 2014/15.