*Official* CMC Infocomm Limited

[Perisher]

CMC Infocomm Limited IPO lai liao.
Who is pressing?

Company: CMC Infocomm Limited
Sponsor: SAC Capital Private Limited
Status: Registered
Lodgement Date: 16 Jul 2015
http://www.sgx.com/wps/wcm/connect/...&CACHEID=8144e090-3e44-48d8-8ff5-d3e26a11987a

Indicative Date and Time Event
31 July 2015, 6.00 p.m. Commencement of Offer
11 August 2015, 12.00 noon Close of Application List
12 August 2015 Balloting of applications, if necessary
13 August 2015, 9.00 a.m. Commence trading on a “ready” basis
18 August 2015 Settlement date for all trades done on a “ready” basis

Invitation in respect of 24,000,000 New Shares
comprising:
(i) 2,400,000 Offer Shares at S$0.25 each by way
of public offer; and
(ii) 21,600,000 Placement Shares at S$0.25 each
by way of placement comprising:
(a) 19,200,000 Placement Shares at S$0.25
for each Placement Share; and

(b) 2,400,000 Reserved Shares at S$0.25
for each Reserved Share reserved for
subscription by the Company’s Directors,
employees, customers, suppliers and
persons who have contributed to the
success of the Group,
payable in full on application.

Still waiting for Mr IPO to update if any.
What are your views?

 

[Perisher]

http://www.dealstreetasia.com/stories/cmc-infocomm-ipo-aims-to-raise-2-9m-9907/
Telecommunications engineering firm CMC Infocomm (CMC), which is a joint venture with CMC Engineering in Malaysia, has launched its initial public offering (IPO) on the Singapore Exchange (SGX), trading at 25 cents per share, targeting to raise net proceeds of some S$4 million (US$2.9 million).

Arranged by SAC Capital, CMC’s offer consists of a placement of 24 million new shares, with 10 percent (2.4 million shares) of the tranche being issued for the public and the remaining 19.2 million shares allocated as placement shares. CMC Infocomm’s preliminary prospectus stated that approximately $1 million in proceeds from the proposed listing would be allocated to debts repayments owed to parent firm TEE International.

CMC Engineering was launched in 1996 to cater to clients requiring engineering solutions in the public transportation, oil and gas, and telecommunications sectors. April 2011 saw TEE International and its current partner CMC Engineering bought a controlling stake in CMC Infocomm

CMC projects a market value of $38 million upon commencing trading and will use the capital raised to finance regional expansion and pay back loans due to shareholders. CMC currently maintains an order book of S$18.1 million (US$13.1 million), to be fulfilled over the next 18 months.

CMC predicts that growth will come mobile networks being expanded and upgraded across the region. CEO Kevin Phua explained: “Seamless mobile network coverage in both indoor and outdoor environments has become the minimum expectation of communications network operators.”

The company has over the last two decades established working ties with many of the telecom operators across Southeast Asia, with the Philippines presenting an appealing market opportunity as its telecommunication infrastructure grows.

“With our capabilities and our long standing relationships with communications network operators and communications network equipment vendors, we believe CMC Infocomm is well-positioned to benefit from this trend,” said executive director Hazwan Alif.

Also Read: SG Dealbook: Keppel O&M secures $684m contract; $1b HK IPO for China’s CICC

FY2014 saw CMC’s loss widen to $668,000, an increase from $262,000. However, revenue in the same period was slightly higher, increasing to $15.9 million from $15.5 million. For nine months from the beginning of June 2014 to the end of February 2015, the company posted earnings of $461,000, on revenue of $11.9 million.

CMC Infocomm was incorporated in Singapore with an initial issued and paid-up capital of S$2 comprising two ordinary shares. However, a restructuring exercise in connection with its IPO resulted in its issued and paid-up capital of CMC Infocomm being listed as S$8,965,218 comprising 128,000,000 ordinary shares, according to a regulatory filing.

Prior to the IPO, CMC Infocomm had paid-up capital of more than $8.9 million comprising 128 million shares and was 50-50 joint venture between CMC Engineering Sdn Bhd and Singapore-listed TEE International, an engineering and infrastructure firm.

Clients of the firm include Singapore mobile phone companies M1, Singtel and StarHub, in addition to Chinese telecoms gear maker Huawei.

The listing of CMC Infocomm is a progression in TEE International expanding beyond its core engineering services into other business activities. TEE Land its property arm, which has undertaken projects in Singapore and Thailand, listed in 2013. With market opportunities rife in the region, especially in Myanmar, which is slated to become the fastest growing telecommunications market globally,

Infrastructure spending in Southeast Asia is projected to increase from now until 2025. According to a KPMG report, ASEAN’s infrastructure market holds huge potential over the next decade, with an estimated US$60 billion needed per year until 2022 to fulfil all regional infrastructure needs.

The energy and transport sectors are expected to compose the largest proportions of this investment, especially with slow growth expected to continue in the mature markets of North America and Western Europe. Telecommunications infrastructure development is certain to follow, especially given the the rise of countries like Indonesia, the Philippines and Vietnam as manufacturing hubs.

 

[Perisher]

CMC Infocomm offering 24m new shares; float is only eighth IPO so far this year

Regional communications services provider CMC Infocomm yesterday launched its initial public offering (IPO), with shares bound for the Catalist board.

It is offering 24 million new shares at 25 cents each in only the eighth IPO on the local bourse so far this year. Of these new shares, 19.2 million are placement shares and 2.4 million are being offered to the public. The rest have been reserved for subscription.

CMC Infocomm expects to raise $4 million from the IPO, with most to be used for expansion.


Formerly CMC Communications, CMC Infocomm was established in 2011 through a joint venture between Malaysia's CMC Engineering and TEE International.

It acquired various subsidiaries in Thailand, the Philippines and Singapore from Keppel T&T's Keppel Communications unit. CMC Infocomm installs and maintains telecommunications infrastructure. Its clients include M1, StarHub and Singtel as well as Huawei and Nokia.

For the nine months ended Feb 28, it saw a net profit of $461,000, on revenue of $11.9 million.

Besides building up its operations in Thailand and the Philippines, CMC Infocomm plans to move into Malaysia.

"It's a market we cannot ignore," said chief executive Kevin Phua, adding that he was also eyeing "a more prominent regional spread".

The firm may also expand into Indonesia, which the company was forced to exit due to tightened government regulations on foreign telecommunications firms in 2010.

Some $600,000 of the net proceeds will help repay the $2.6 million owed to controlling shareholder TEE International and $200,000 will be used as working capital.

Executive director Hazwan Rahman said CMC Infocomm is committed to minimising external financing, and that the sum to be raised for working capital, which is "just enough", is expected to tide the firm over for now.

The IPO closes at noon on Aug 11 and trading is expected to begin two days later.

http://www.straitstimes.com/business/companies-markets/telco-service-provider-launches-4m-ipo

 

[winorlose]

Looks like will go underwater for nw since her FA isnt too good.

 

[Equivocal2011]

Not pressing.

Wait for manulife.

 

[Sinkie]

Looks like will go underwater for nw since her FA isnt too good.

Won't lah hehe

 

[winorlose]

Even choo chiang going underwater.. My friend very close to the lim family.. both of the owners bought a bmw i8 each.

 

[s-ghost]

so how? worth to press?

 

[Perisher]

I think now is a bad time to go into the market due to the overall market correction but who knows, maybe the market chiong up in the next week or two.
Shall wait till August 10-11 to see if I wanna press.

 

[Sinkie]

Even choo chiang going underwater.. My friend very close to the lim family.. both of the owners bought a bmw i8 each.

Choo chiang opened above water lah..

35c listing price, opened 37 or 38c, then day high 40c on first day

And like most ipo, 2nd day onward it drift downward le

 

[Perisher]

Choo chiang opened above water lah..

35c listing price, opened 37 or 38c, then day high 40c on first day

And like most ipo, 2nd day onward it drift downward le

Ya, was gonna say, recently all the IPO chiong up, some even went up big. Seems the IPO listed here still have the market for it for what happens after really depends on the company's fundamental and the market mood liao.

Choo Chiang was suay to open on a bad market period.
That's also why I wanna wait till August 10-11 to decide whether to apply. If the market has upward momentum, it's not bad to press.

 

[SCG8866T]

Cmc loss making till recently. I got a friend who was placed for 40lots. Maybe staggable but i dont recommend keeping it long term due to regional macro risk and tee intl(dont really like that company's fundamental due to its high debt, net debt to equity 2.456x). My view.

 

[neolaw]

Cmc loss making till recently. I got a friend who was placed for 40lots. Maybe staggable but i dont recommend keeping it long term due to regional macro risk and tee intl(dont really like that company's fundamental due to its high debt, net debt to equity 2.456x). My view.

Ix biophama went up to .60+ fit a few minutes. So ... That's more risky compared to this.

However, no money

 

[supertanweekiat]

19.2mil placement share..anyone know who will be holding it? If this large amount is for fund manager to play..expect some merry go round on first day!!
Also every year making loss until the year they want to IPO..looks fishy leh..

 

[neolaw]

19.2mil placement share..anyone know who will be holding it? If this large amount is for fund manager to play..expect some merry go round on first day!!
Also every year making loss until the year they want to IPO..looks fishy leh..

Some portion of private placement is for stock option people. Employees

 

[kenpachi82]

19.2mil placement share..anyone know who will be holding it? If this large amount is for fund manager to play..expect some merry go round on first day!!
Also every year making loss until the year they want to IPO..looks fishy leh..

there are good reasons for accountants to be highly paid.. (especially the ones at Noble..)

 

[Sinkie]

Spreading its wings
CMC Infocomm (CMCI) offers integrated and innovative communications solutions and services to telcos and communications network equipment vendors to suit the evolving needs of mobile device users. The group’s comprehensive solutions and services encompass a wide spectrum of solutions and services in the telecommunications value chain, enabling it to provide seamless access to wireless connectivity among mobile device users. CMCI has operations in Singapore, Thailand and the Philippines and has completed more than 80 projects since 2011.
The group's business, traced back to the 1990s, was previously Keppel Communication's business established as Trisilco Folec Sdn Bhd with other partners. The business initially focused on providing paging, trunk radio and analogue cellular technical services. CMCC Singapore was incorporated in April 2003 as a subsidiary of Trisilco Folec Sdn Bhd under the name Trisilco Folec Pte Ltd. In July 2003, Keppel Communications transferred its wireless network engineering business to Trisilco Folec Sdn Bhd. In 2011, TEE International and CMC Engineering entered into a 50-50 joint venture and established CMTE Technology to acquire 80% of the issued share capital of CMCC Singapore (together with its wholly-owned subsidiary, CMCC Philippines) from Radiance Converged Solutions Sdn Bhd (a related corporation of Keppel Communications). The acquired companies were subsequently renamed and operating under the CMC Communications brand in Singapore, Malaysia, Thailand and the Philippines in 2013. In May 2014, the put and call options were exercised and CMTE Technology then held the entire issued share capital of CMCC Singapore.
The IPO price of S$0.25 translates to over 40x FY09/15e annualized PER and 2.5x P/NAV. Though this seems expensive in the near-term, this is due partially to its high amortization of intangible asset expenses. However, looking at its S$4.5m NTA as at 31 December 2010 from TEE’s announcement to S$7.1m as at 28 February 2015 from its prospectus, this translates to approximately 12% 4-year CAGR growth.
The group has zero gearing and a good reputation with strong market share in Singapore, Thailand and Philippines. It did not aggressively expand in Malaysia due to a friendly non-compete agreement with Keppel T&T’s Malaysian partner and the group was focusing its capital on the existing three markets. We believe the Malaysian market could be another significant key growth driver after the IPO. We recommend a Subscribe only for its long-term prospect.
Another major shareholder, CMC Engineering is actively involved in railway transportation, along with oil and gas and is the turnkey contractor for system works package for the light rail transit Kelana Jaya Line Extension project in Malaysia.

Investment Highlights
Established track record and long standing relationships with reputable customers, suppliers and communications network equipment vendors. CMC Infocomm has completed over 80 projects in Singapore, Thailand, the Philippines and Malaysia since 2011, with repeat customers such as M1, Nokia, Globe and AIS.
Regional presence with operations in Singapore, Thailand and the Philippines. Its presence in these markets enables the group to adapt to the operating conditions, respond quickly to the changing needs and requirements of customers in these key markets, and secure projects and provide solutions and services beyond Singapore.
Full turnkey solutions. The group has the expertise and ability to provide complete solutions and services from planning and design, to construction and implementation of their customers’ mobile network infrastructure in an efficient and cost-effective manner.
High barriers to entry. Substantial technical expertise is required to complete projects in the telecommunications industry and significant capital investment is required for the tools used for testing and measuring the quality of wireless signals and design software. Customers embarking on projects to upgrade their networks would be inclined to appoint the solutions and service providers who had rolled-out their initial projects.

 

[Sinkie]

Company Background
CMC Infocomm Limited is a regional integrated communications solutions and services provider with operations in Singapore, Thailand and the Philippines. With over 20 years of experience in the telecommunications industry, the group has completed over 80 projects in Singapore, Thailand, the Philippines and Malaysia since 2011. The group’s comprehensive solutions and services encompass a wide spectrum of solutions and services in the telecommunications value chain, enabling it to provide seamless access to wireless connectivity among mobile device users.
The group’s business is divided into four main segments:
(i) In-building coverage business entails the installation of indoor antennae and wiring in buildings. In-building coverage segment comprise site survey, radio frequency engineering, procurement, propagation and simulation of radio coverage using radio frequency design tools, implementation, data collection, testing and commissioning. Maximise customers’ mobile network coverage and optimise their network performance by offering reliable and stable signals for mobile device users within buildings and/or by suppressing interferences arising from the overlapping of signals.
(ii) Outdoor construction business entails the installation of radio equipment and mounting of antennae on telecommunications towers, and the installation of transmission poles on the roof tops of buildings as well as steel towers in green fields to create a wireless radio signal network. Outdoor construction segment comprise site survey, design, construction planning, procurement, implementation, testing and commissioning
(iii) Telecommunications implementation business entails the installation of cables, antennae, transmission cabinets, radio base transceiver station cabinets, radio components and modules on any cellular sites including on the roof tops of buildings as well as in green fields. Telecommunications implementation segment comprise site survey, preparation of technical proposals, implementation planning, procurement, testing, trouble-shooting and commissioning.
(iv) Maintenance services business provides both corrective and preventive maintenance services to ensure network reliability and minimal network disruptions. The group provides corrective maintenance services to communications network operators when they suffer systems failure due to equipment breakdown or other reasons. This service is available 24 hours a day and seven days a week. The Group also provide preventive maintenance services to communications network operators, where work is carried out in accordance with a schedule to service and maintain equipment in good condition to minimise hardware failures.

The demand for data bandwidth in Singapore, similar to other developed mobile markets, is rapidly outpacing supply. To address this, the Singapore government has unveiled a wide range of collaborative government initiatives through its Smart Nation Programme to transform Singapore, with the objective of enabling and providing a speedy, secure, cost-effective and scalable nationwide communications infrastructure. One of the key plans of this initiative is for a telecommunications network to be built and owned by the government, a departure from normal practice as the government usually leases connectivity from communications network operators. The Infocom m Development Authority is in the midst of identifying and certifying the mobile network operator that will operate the telecommunications infrastructure on behalf of the government. There are also plans for deployment and installation of above ground boxes, which will provide a ready-built common infrastructure for sensor deployment by supplying points to access fibre-optics connectivity and power. The above ground boxes are to be installed in outdoor areas such as bus stops, parks and traffic junctions, where there is demand for sensor-based technologies. The Government is also seeking to extend connectivity through technologies from heterogeneous network, which is expected to optimise the use of wireless spectrum by allowing devices to switch seamlessly between various types of wireless networks. The group believes that these government initiatives will translate into opportunities for the group to participate in the development of this new telecommunications infrastructure as well as in the deployment and installation works, as our business capabilities match these demands. Order Book As at the Latest Practicable Date, CMC’s order book based on confirmed contracts for on-going projects was approximately S$18.1m, and the group expect to substantially deliver the projects within the next 18 months. However, due to the possibility of changes in customers’ delivery schedules or cancellations and potential delays in delivery, the value of the order book as at any particular date may not be indicative of the group sales of any succeeding period.

 

[Sinkie]

Key Risks

Subsidiary may cease operations. CMCC Philippines is required to obtain a licence from the PCAB. However, CMCC Philippines currently does not have a PCAB licence. It does not qualify for a Regular Licence as it is wholly foreign-owned. Therefore CMCC Philippines is looking for a local partner in the Philippines whereby the local partner shall have at least 60% equity participation in the joint venture entity, in order to meet the requirements for a PCAB licence. In the event that CMCC Philippines is unable to form a joint venture or obtain a PCAB license. It may be required to cease its business operation. As it stands, CMCC Philippines for 20.6%, 8.8%, 11.3% and 8% for FY 12, FY13,FY14 and FY9M15 respectively. Financial performance will be adversely affected. In addition, if the joint partner hold at least 60% equity interest, the joint venture entity may become the group associated company and the group may not be able to consolidate the financial results of the entity with the group’s financial results. Financial performance hinges on major customer. M1 accounts on average for 39% of the group revenue from FY12 to FY9M15. Notwithstanding that the group have been awarded a maintenance contract by M1 to service its mobile networks in the eastern and southern regions of Singapore, there is no assurance that this contract will continue to be renewed when it expires.

Future Plans

 Expand into new geographical markets such as neighbouring ASEAN countries that are still developing their telecommunication infrastructure, in particular, Malaysia and Indonesia. The penetration into new geographical areas will widen the group regional presence and collaborate with local telecommunications players in those countries to tap on potential growth opportunities.  Expand the current scope of communications solutions and services to include additional value added solutions and services for use in the information communications and technology business, including in the areas of security and surveillance.  Venture into complementary businesses relating to the provision of solutions for fixed networks and/or distribution of related peripheral products such as fibre optic cables and antennae.  Venture into the business of owning and leasing distributed antennae systems to communications network operators on a long-term basis, which will increase its recurrent income stream, in addition to the income stream from the Maintenance Services segment.

by NRA capital

 

[s-ghost]

don't know want to press or not