Econ Healthcare Asia Ltd Lone Wolf report (IPO)

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Econ Healthcare Asia IPO felt like déjà vu again. It was taken private in 2012 and now ipo(ing) again. Not again. Remember Aztech.....hmmm.

Econ Healthcare runs a chain of aging/assisted homes in Singapore,Malaysia and China. China business is a small 44 beds operation. Having call themselves China Healthcare previously. The expansion into China is at best slow. 

At 28c,the ipo is priced at a p/e of 14-17x. It is fairly priced as compare to other medical related stock. I don’t think there is much money left on the table. Given the fact only 1.8m is available for public. That will ensure plenty of over subscription for the IPO. My impression of Econ healthcare aka China Healthcare previously was an illiquid stock with very little trading interest after initial ipo. Given the size of the current IPO, one might face the same situation.

Econ Healthcare Asia is offering 50m shares at Singapore 28 cents each for its upcoming IPO of which 48.2m shares will be through placement and 1.8m shares for the public. The market cap based on the IPO price is around $72m. The IPO will close on 15 April 2021 at 12 noon and commence trading on 19 April, 9am.

Summary 

With only 1.8m shares available for public. Only a handful of shares will be given to successful applicants. Probably less than 6k shares for below 100k applied. Most people are likely to lose their $2 IPO fees. I will sit out the IPO and save that 2 bucks for kopi.

Wolf rating

🐺


🐺meow

🐺🐺hot

🐺🐺🐺sizzling 


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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.

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