Resources Global Development Limited – IPO

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This will be a very short write up as there is no public float and shares available for placement is at 15 mil shares.


Resources Global Development Limited is offering 15 mil shares for it’s IPO on SGX Catalist at $0.20 per share. The offer is available for placement and opens on 12 Jan 2020 at 9 am and closes on 29 Jan 2020 at noon and expected to list on 31st Jan 2020.

Business Overview

Resources Global is in the coal industry and they are engaged in the Coal Trading Business and Coal Shipping Services within Indonesia.

Their customers mainly are coal traders, who procure thermal coal for domestic end-users operating in various industries, including nickel
smelting and cement manufacturing.

Resources Global secured fixed term coal sale contracts from customers for aggregate sales of up to 1.5 million metric tonnes (“MT”) of coal in FY2019, and fi xed term coal purchase contracts from suppliers for aggregate supply of up to 1.9 million MT of coal in FY2019.

The Company also provide chartering services of tugboats, barges and bulk carrier to transport coal within the Indonesian territories.

Base on their prospects, their vessels is at 100% utilisation rate and equipped with a vessel tracking system to track location and monitor the vessels’ movements and whereabouts of cargo in real time.

Financial Highlight

Revenue has been steady for FY 2016 and 2017 at around 18 mils. In FY 2018, revenue increases to 44 mils due to higher sales from their trading business. I’m wondering how come there is no FY 2019 report of even 3rd quarter 2019. My guess is the report bi-yearly and doesn’t have the time to add-in.

Conclusion

Base on the number of shares being available for placement and the amount raised, I won’t consider getting into this counter. Although the company is holding most of the shares and committed not to sell within 6 months period after listing. I’ll skip this and won’t look into this counter even after its list. It is likely to stay stagnant.

Author: The Financial Guy

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