New Issue Review : Heeton Holdings 3Y 6%
HEETON HOLDINGS LIMITED 3YR SGD
– New Heeton SGD 3yrs announced at the back of reverse enquiry
– IPG at 6% area
Comparable Bonds
Heeton 5.6 2015 @ 100.375, 5.30%
TA Corp 5.25 2016 @ 100.75, 4.91%
Another 225 million left for them to borrow so Heeton is back. [Note total MTN size is SGD 300 mio vs market capitalisation of SGD 185 mio
Not many units in their Singapore inventory. 76 unsold properties out of 588 units across 6 developments.
I would guess it must be their Thai portfolio ? http://www.heeton.com/en/site/heeton_inter_invest Or new projects ?
Latest financial statement
“Fixed deposits decreased substantially from S$47.12 million to S$6.0 million in 1Q2014 as a result of the acquisition of Woodley. Other receivables decreased from S$6.04 million to S$3.52 million was mainly attributed to: (a) deposit of S$4.29 million paid for the acquisition of Woodley and (b) deposit of S$2.16 million placed for the proposed purchase of a property in London.
Cash and cash equivalents decreased by S$48.95 million in 1Q2014. The following were the major movements during the period: (a) increase in development properties of $1.35 million as a result of progress made in the construction of Onze@Tanjong Pagar and Earlington in London; (b) net cash outflow of $46.37 million for the acquisition of Woodley; (c) loans of $5.72 million and $5.26 million to investee company and associated companies respectively.”
My view and comments on the company remain unchanged from last year.
https://tradehaven.net/market/easy-money-review-heeton-holdings/
And their income last year was not too hot (pre-tax income of 20 mio vs 55 mio in 2012).
The market and bankers are selling the idea of a shortage of investments and investors are chasing yields. This paper probably does not qualify for leverage for the ordinary buyer. I would personally prefer a higher yield buffer as I believe we should give ourselves some room to breathe and be discerning.
Yet having said that, and with reference to an article I had removed 2 weeks ago, I would expect decent take up for this bond.
Orderbooks are in excess of S$100mm
Final price guidance at 5.90%
Expect issue size around S$50mm
Not very hot this one eh!
Because … we have LOGAN PROPERTY HOLDINGS 5Y NC 3 AT 11.5% TODAY.
Now that is class.
Ah right missed that one and its rated too. Still just being 2X oversubscribed says alot.
It is just fresh out of oven. Books can’t be closed yet.