Union Gas *Official* (SGX: 1F2)

madtari

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This company is just a retailer, not a producer... why would it be affected? U c oil fluctuate like mad, shell, ExxonMobil etc got affected or not? :look:

Read some day before, Qatar will ramp up natural gas output and sell at cheap price.

Will it's be bad news for union?
 

hellclown

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Read some day before, Qatar will ramp up natural gas output and sell at cheap price.

Will it's be bad news for union?

My guess is not really a gd or bad news.. Iirc, the volatility of price doesnt have a severe impact for union gas. This is because they will be able to procure much cheaper and charge their customer cheaper as well.. I think this was explained in the revenue comparison between the period fy2016 vs fy2015 and fy2015 vs fy2014
 

SpinFire

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Had a quick read of the prospectus. Union Gas sells LPG, CNG and Diesel. It's LPG sales from 2014-2016 is stagnant. CNG sales have been declining rapidly from 2014-2016. Its Diesel business started out in 2015, and has grown since then. Looks like its business is currently depending on just Diesel sales for growth.

The main buyers of its CNG are the natural gas vehicles, which are rapidly declining.

I think it depends on how much the IPO is priced at. Usually Chinese bosses will leave money on the table for investors. :)
 
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xSieghartx

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Union Gas Holdings launches Catalist IPO with 60 million invitation shares at 25 cents each

SINGAPORE - Fuel products provider Union Gas Holdings has launched its initial public offering on the Catalist board that is set to raise net proceeds of about $5.72 million.

The company is offering 60 million invitation shares - comprising 30 million new shares and 30 million vendor shares - at 25 cents apiece, it said on Thursday (July 13).

About 1.28 million shares will be offered to the public, while the remaining 58.72 million shares will be placed with institutional investors.

The invitation shares represent 30 per cent of the enlarged share capital of the company, and are priced at about 6.95 times of its pro forma earnings per share of 3.6 cents for the year ended Dec 31, 2016.

Union Gas Holdings is among the biggest suppliers of bottled liquefied petroleum gas cylinders to households in Singapore, and for compressed natural gas to retail and industrial customers here.
 

Sinkie

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Knn I tio 3000 shares only.

Rejected it, I'm going atm press 2,000,000 now!
 

my3

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IPO new shares 30 million, vendor another 30 million.
Usually vendor shares is a sign of weakness and exit by pre-ipo investors.

Price would tank in within 2 months right?
 
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