SGD New Issue Review : TA CORPORATION SGD 2.5-YR SENIOR UNSECURED
TA CORPORATION SGD 2.5-YR SENIOR UNSECURED – PX GUIDANCE
Issuer : TA Corporation Ltd.
Status: Senior, unsecured
Issue Size: TBD
Distribution: As per Information Memorandum, primarily Singapore selling restrictions Under Section 274/275 of SFA
Format/Docs: Reg S Bearer / Issuer’s SGD 150 million Multicurrency Medium Term Note Programme
Price Guidance: 5.5% area, semi-annual, ACT/365 (Fixed)
Governing Law: Singapore Law
Selling Restrictions: Sections 274 and/or 275 of the Singapore SFA
How cute and IT IS LISTED BTW, although no one could find it all morning.
Market Cap SGD 158 mio.
Brief description : TA Corporation Ltd. develop and sells residential and other types of properties. The Company is also involved in the construction business, including complementary services such as steel fabrication and metal works, a worker training and test center in Chennai, India, as well as the design, installation and maintenance of air conditioning and mechanical ventilation systems.
Was going to label them the smallest market cap for an issuer til I found the list of high risk bonds last year led by Enviro-Hub holdings (SGD 58 mio mkt cap), Marco Polo Marine (SGD 129 mio), Heeton and Mencast, both at SGD 170-ish mio.
This proves it. Everyone is borrowing as much as they can right now.
Firstly, I think we are all unclear as to what their actual business model is. Is it construction or training or air con ?
Secondly, they are quite highly leveraged already at 2.9 times.
Thirdly, I wonder what made them price this under Gallant ?
Then I found out the reason !
TA stands for Tiong Aik, which has been around for 40 years and we will surely see lots of tow kay support for their fellow bonds.