SGD New Issue Review : Keong Hong Holdings 3Y Low 6%

KEONG HONG HOLDINGS 3-YR SGD PX GUIDANCE – LOW 6% AREA

Issuer: Keong Hong Holdings Limited
Status: Senior, unsecured
Rating: Unrated
Issue Size: TBD
Distribution:           As per Information Memorandum dated 17 April 2015, including Singapore selling restrictions under Section 274/275 of SFA
Format/Docs: Reg S Bearer / Issuer’s SGD 150 million Multicurrency
Medium Term Note Programme (“MTN Programme”)
Price Guidance: Low 6% area
Interest Payment: Semi-annual, ACT/365 (Fixed)
Tenor:3 Year
Issue Date: [●] 2015
Maturity Date:   [●] 2018
Financial Covenants:    As per the MTN Programme
Denomination:           SGD250K
Governing Law:          Singapore Law
Listing:                SGX-ST
Clearing:               CDP
Selling Restrictions:   Sections 274 and/or 275 of the Singapore SFA
Sole Bookrunner:        HSBC

** NEW 3Y SGD ANNOUNCED ANCHORED BY REVERSE INTERESTS POST ROADSHOW
** PRICE GUIDANCE: LOW 6% AREA
** AS EARLY AS TODAY’S BUSINESS

** KEY COMPARABLES
KOH BROTHERS  S$50M  4.8% 18      100.55 / 4.57%
QNM  S$60M  4.4% 18      101.10 / 3.98%

Keong Hong Holdings Ltd. offers construction services.  The Company builds residential, commercial, industrial and institutional construction services. Keong Hong offers construction services in Singapore and the Maldives and develops property in Singapore.

Market Cap : S$103.7 mio. All time high stock price S$0.455 on 4 May 2015, current market price S$0.445.

Listed in 2011 and majority owned by the CEO, Ronald Leo, the company does not appear to have a lot of assets on their balance sheet and they are fairly geared.

Looks like a good bond to buy for insiders at over 6% yield vs dividends of 3.93%.