Sim Leisure Group Ltd

Share:

Sim Leisure Group is offering 26.4 mil shares for its IPO on Catalist at $0.22 per share. The Group is offering placement shares and there will not be shares for the public. The Group will raise proceeds of approximately $5.81 mil from the IPO. Sim Leisure Group market capitalization is S$29.43 mil.

Indicative date/time

Event

22 February 2019 immediately upon
registration of this Offer Document

Commencement of Placement

27 February 2019 at 12.00 p.m.

Close of Application List

1 March 2019 at 9.00 a.m.

Commence trading on a “ready” basis

5 March 2019

Settlement date for all trades done on a “ready” basis



Company Overview

Incorporated in Singapore on 8 March 2018, Sim Leisure Group Ltd is a developer and operator of theme parks based in Penang, Malaysia. The Group is a retro-eco theme park developer and operator that provides affordable quality fun where everyone can play the games of yesteryear recreated for today.

The Group presently operates the Theme Parks, ESCAPE AdventurePlay and ESCAPE Waterplay, which are colocated next to each other in Penang, Malaysia and cater to both local and foreign visitors and tourists. These theme parks aim to provide a memorable, entertaining and educational experience for all the visitors.

Business Overview

ESCAPE – the fun destination with exciting rides and attractions…hosted with nature in mind that welcomes visitors who believe that growing up is optional.

ESCAPE is Sim Leisure’s own designed and built outdoor adventure theme park.

ESCAPE Theme park


Financial Highlight

Sim Leisure Group revenue been maintained at RM 9 mil from FY2015 to FY2017. In 1H 2018 their recenue is almost comparable as a full FY.

FY Reports

The additionals revenue is explained as below.

1H 2018

What I Like

  • Differentiated products and services from competitors
  • Theme parks offer valuable educational experiences to visitors and provide a distinctive alternative to the usual indoor or thrill-oriented parks
  • Develop and operate theme parks ourselves, eliminating reliance on third parties
  • Expanding into ASEAN cities such as Bangkok, Jakarta, Manila and Ho Chi Minh City

What I Don’t Like

  • High Expenses for employees, R&M, ulities and rental of land
  • The increase of minimum wages with effect from 1st Jan 2019
  • Public liability is high risk for the operation of theme park
  • Highly depending on skilled workers


Conclusion

As much as I like to bring my kids to theme park when ever we travel. For local citizen, they will get bored after a few visits. A good example will be lego land, it’s so close to Singapore but how many parents who bought annual pass are still bringing their children to Legoland. The Company has to keep on introudcing new attractions and water play facilities. Lastly no one will be happy to pay a premium price for the placement shares of 47% to NAV.

NAV Value

Author: The Financial Guy

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