TrickleStar Limited IPO

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TrickleStar Limited is offering 15m placement shares for its IPO on Catalist at $0.26 per share. Market capitalization based on 81.791m shares is S$21.27 mil. The offer will close on 14th June at 12 noon and start trading on 18th June at 9 am. 

IPO Timeline

Business Overview

The Company design and supply affordable, simple and easy-to-use energy-saving products to help consumers reduce energy consumption in their homes and workplaces. These products also protect consumer devices and help to minimise environmental impact by reducing energy wastage
from appliances and consumer electronics products.

The products consist of energy-saving products includes Advanced Powerstrips, load controllers, energy meters, energy monitors and surge
protectors.

The products consist of energy-saving products includes Advanced Powerstrips, load controllers, energy meters, energy monitors and surge
protectors.

Financial Highlight

Base on the offered document, the group had turned from loss to profit of USD 2m in FY2018 and close to 200% increase from FY17.

 

Valuation

Based on the price of the Placement Shares and the Group’s historical net earnings per share for the financial year ended 31 December 2018, the Group’s price-to-earnings ratio, calculated using its pre-IPO issued and paid-up share capital is 6.53 times and PB is 1.79 times.

Dividend

The group is committed to a dividend payout ratio of not less than 50.0% of our Group’s consolidated net profit after tax, excluding non-controlling interests and non-recurring, one-off and exceptional items, whether as an annual dividend or an interim dividend.

Conclusion

For this IPO, the group is raising SGD $2.4m which is a small amount for them to use as working capital. Their products will be popular for new homes or commercial properties where users are looking at saving energy for their daily usage and not forgetting the smart home. Since its a placement only IPO. let’s see how the market determines the price of this company. Given it’s low PE and PB, hope the faith is there.  

Author: The Financial Guy

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