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Gems TV IPO

Jason Choo's father is the nephew of Cathay Organisation founder Loke Wan Tho.

 

hi any one appliying here?

I safe $1 today from applying this =)

maybe should used the $1 to buy 4D

 

Well just for you info, if you ever live in  UK or Europe.
They seem to be an advance develop country with high speed internet access every where?..... indeed......

You will be surprise lot old folk, aunty & uncle still prefer the old tech way of buying thing. And most of them are retiree with strong buying power that  are targeted by Gem TV!!!

 

Oh sorry, my english is not very good !



Last time in Singapore TV, always after midnight, there selling all sports equipment or fruit juice extractor in the TV media program. Then it went missing in TV media business. Now all selling of those goods can now be found in ebay and yahoo and alibaba in China. What do you think about this kind of business of selling jewellery in TV program ? Any prospect especially their plan to expand in China ?

 

I'm not sure I understand you -

"And the way selling is like the old TV media and this is way all push out by selling goods in the internet"

 

That is why we need your opinion ! I think the gainer in this stock is Hour Glass ! And the way selling is like the old TV media and this is way all push out by selling goods in the internet, what do you think ?

 

That's why I think that IPOs are not exactly a sure bet.... I prefer stocks that have charts for me to analyse and IPOs have none.

 

best to avoid this one for time being as ipo price is very high and big float.suspect going to be under water

 

hmm recent all IPO's after a few days opening, either float around the IPO px or go below water. Guess this not a very good sign for any new IPO coming along.

 

Can someone digest this and comment it !

IPO Fact Sheet

Company: Gems TV Holdings Limited

Board MainMain

New Shares 206.1m206.1m

Placing Shares 271.5m271.5m

Public Offer Shares 14.3m14.3m

Vendor Shares 79.7m79.7m

Total Number of Shares (post IPO) 368.2m368.2m

Price S$1.08S$1.08

NTA per share (Jun 06) S$0.08S$0.08

NTA per share (post-IPO) S$0.27S$0.27

PE fully diluted (2006) 1.95x1.95x

Offer Size S$308.7mS$308.7m

Market Cap (post-IPO) S$1.1bS$1.1b

Sponsor/ Bookrunner Credit Suisse, DBSCredit Suisse, DBS

Offer 4 Nov 06 (9am)4 Nov 06 (9am)

Close 8 Nov 06(9am)8 Nov 06(9am)

Result 9 Nov 069 Nov 06

Trading 10 Nov 06 (on a ?ready? basis)10 Nov 06 (on a ?ready? basis)

Expansion into

US

S$78.5m 40%

Expansion into

Japan

S$28.3m 10%

Expansion into

PRC

S$17.3m 10%

Expand Thailand

operations

S$15.7m 10%

Use of Proceeds

Others S$63.1m 30%

Background

? Integrated manufacturer and television home shopping retailer of coloured gemstone jewellery.Integrated manufacturer and television home shopping retailer of coloured gemstone jewellery.

? Operates jewellery manufacturing facilities in Chanthaburi, Thailand and owns two dedicated

jewellery home shopping channels in UK, GemsTV and GemsTV2.Operates jewellery manufacturing facilities in Chanthaburi, Thailand and owns two dedicated

jewellery home shopping channels in UK, GemsTV and GemsTV2.

? Sells handcrafted gemstone jewellery over the Internet. Suppliers of gemstones are from Brazil,

PRC, East Africa, India, Madagascar and Sri Lanka.Sells handcrafted gemstone jewellery over the Internet. Suppliers of gemstones are from Brazil,

PRC, East Africa, India, Madagascar and Sri Lanka.

? Recently signed an agreement with DirectTV Inc. to provide satellite carriage for GemsTV in US in

Financial Highlights

Profit and LossRecently signed an agreement with DirectTV Inc. to provide satellite carriage for GemsTV in US in

Financial Highlights

Profit and LossFinancial Highlights

Profit and Loss

(S$m) FY04 FY05 FY06

Revenue 22.5 61.6 216.0

% increase yoy n.a. 174% 251%

Gross Profit 9.7 22.1 112.1

Gross Margin (%) 43% 36% 52%

Net Profit (0.3) 8.4 45.2

Net Profit Margin (%) n.a. 14% 21%

 Balance Sheet

(S$m) FY04 FY05 FY06

Current Assets 16.6 38.6 84.0

Non-current Assets 2.6 13.3 23.5

Total Assets 19.2 51.9 107.5

Current Liabilities 5.1 31.8 47.4

Non-current Liabilities 0.2 5.7 2.7

Shareholders? Equity 13.9 21.9 57.4

Total Debt/Equity (x) n.a. 0.09 0.03

 Cash Flow

(S$m) FY04 FY05 FY06

Operating 1.7 7.0 43.2

Investing (0.4) 4.8 (3.2)

Net Inflow/(outflow) 0.2 6.6 12.0

Ending Cash & Cash

Equivalent

1.0 7.7 19.9

Business Prospects

Demand growth for Jewelry

According to Euromonitor, the US jewellery market will grow at a CAGR of 5.2% between 2005 and

2007 to reach US$57.1b.

For Japan, sales are forecasted to reach US$20.9b in 2007.

Growth in home shopping market in the US

Home shopping market is estimated to grow at a CAGR of 5.2% from 2005 to 2007 to reach

US$206.8b in 2007.

Competitive Strengths: Please refer to Prospectus (pages 72-75).Please refer to Prospectus (pages 72-75).

Risk Factors: Please refer to Prospectus (pages 17-33).

Note: Information contained in this fact sheet is extracted from Gems TV Holdings prospectus (dated 3 November

2006), which is subject to changes, and can be found at http://masnet.mas.gov.sg/opera/sdrprosp.nsfPlease refer to Prospectus (pages 17-33).

Note: Information contained in this fact sheet is extracted from Gems TV Holdings prospectus (dated 3 November

2006), which is subject to changes, and can be found at http://masnet.mas.gov.sg/opera/sdrprosp.nsf

Singapore Research Team

As of 6th Nov 2006, the analyst and his / her immediate family do not hold positions in the securities recommended in this report.

As of 6th Nov 2006, the analyst and his / her immediate family do not hold positions in the securities recommended in this report.

 

this one rated by Trademan with 4 & half bull.

http://www.activeboard.com/forum.spark?forumID=66470&p=3&topicID=8745620

 

Can't sense any bull nearby lehh....Don know 1 2 give this a Miss or a Mrs!!! 

 

Hi teeth,

yes I agree with you that IPO is time for t hose old fox to off-load their share and earn money from the public. To them each share might worth less then 0.50 or less in this case. Imagine they are selling it at 1.08 to the public.

But with the current strong bull mkt, making some kopi money shouldn't be any problem... but long term vise... perhaps some other expert can give their opinion. =)

 

ALL new ipos are above its price when they are listed as this is a BULL market. After that it can be another game plan. So those who get under placement or at atm will be laughing to the bank! Those who do not get any just cry lor! (ha ha ha)

 

Today Sunday, big boys on holiday, can't comment yet yahh..., but to me personnally. Mr choo spend so much $$$ just to get some lunch tips from U.S. investor Warren Buffett, bidding $202,100 for this privilege. LO_ok like $$$ is too much been throw around to show off. (To Warren Buffett that kind of $$$ will buy him to give away tips. I personally don think so, so good secret machine to make $$$ will not shoot out of it own mouth).

As for Choo's stake will be reduced to 20.5% from 25.7% following the IPO. The Hour Glass will see its stake reduced to 4% from 5% once the IPO is completed. (A chance and Time for them to collect monies back at $1.08c) so far it dons't sound so opportunties for me to support with..given that ipo book making is a chance to guage it px, so it is $1.08 for a start.

I personnally tink tink Ouhua "hokkien call it Ooohua" or i call it in short "Ou" (black oil) is in better shape, still those tink Gems TV is a Gem, wish U the best yaahh...grey mkt should be above water, That my personnal guessing oni hohh...... 

 

This one looks interesting.

 

Will be checking out it ipo (subscribe or not !), this coming week.Yahh..

 

The IPO is being handled by Credit Suisse as sole global coordinator and bookrunner. DBS Bank and CIMB-GK are the sub-placement agents of the IPO.
My observation on new ipos handled directly or sub- by cimb-gk is such that more of distribution all the way till zero. winess wilmar, pan hong and most recent china kangda.....

 

Gems TV Holdings Ltd. would raise $309 million after it priced its shares at $1.08 each, the upper end of its $0.95-$1.10 price range.



A person close to the Gems TV deal said the offering had met with strong demand from institutional investors.



"The institutional placement was over 12x covered, which is a marked contrast to recent deals," the source said.



The offering is equivalent to about 28% of the company's enlarged share capital of 1.03 billion shares.



Chief Executive Officer Jason Choo attracted attention in Singapore in 2004 when he won an eBay auction to have lunch with U.S. investor Warren Buffett, bidding $202,100 for the privilege.



Choo's stake in the company will be reduced to 20.5% from 25.7% following the IPO.



The Hour Glass will see its stake reduced to 4% from 5% once the IPO is completed.



Gems TV has signed an agreement with satellite TV operator DirecTV to carry its television programmes in the United States from November, in a deal which could enable it to reach 15 million U.S. subscribers.

 

Gems TV Holdings Ltd, a gemstone jewelry maker and TV retailer in the UK, has launched its IPO of 285.77 mln new and vendor shares at $1.08 each.



The IPO comprises 79.71 mln vendor shares and 206.06 mln new shares, the company said in its IPO prospectus. Of the IPO shares, 14.29 mln shares will be sold to retail investors and 271.48 mln to institutional investors. Of the retail tranche, 2 mln shares will be reserved for the company's employees.



The IPO is being handled by Credit Suisse as sole global coordinator and bookrunner. DBS Bank and CIMB-GK are the sub-placement agents of the IPO.



The offer closes on Nov 8 and trading of the shares is expected to start Nov 10.



Net proceeds from the sale of new shares, estimated at $212 mln, will be used by the company to fund its US, Japan and China expansion plans and boost production capacity in Thailand. It also plans to upgrade its facilities in the UK and buy a stake in a German company out of the proceeds.



Gems TV swung from a net loss of US$163,000 in the year to June 2004 to a net profit of $5.32 mln the following year and to $28.8 mln usd in the year to June 2006.