Bumitama Agri Ltd *Official* (SGX:P8Z)

[Pocoyoz]

Bumitama Agri IPO debut

4. Valuation
Based on the issue price of S$0.745/share, we note that Bumitama is being offered at a historical P/E of 11.6x (not adjusted for biological assets gain). While it looks like it is priced higher than the industry average of 10.9x, especially to both Golden Agri and Global Palm; but it is still comparable to First Resources and at a slight discount to Kencana Agri.

 

[peterchan75]

This is rough estimate of potential revenue from crude palm oil.
Current spot price per ton = US$1173
Rough yield per hector per year = 25 metric ton
Annual palm seed harvest = 190000 hector * 25 = 4.75M ton
Rough yield from seed to oil = 23.6%
Est annual crude palm oil = 0.236*4.75 = 1.121M ton
Est max annual revenue = 1.173*1.121=US$1.3B.

 

[Vincent_G]

I see a lot of novice IPO applicants.

If you see enough IPO allocation ratio, you will know that buying 3 lots or 6 lots is usually a waste; cos you may as well just apply for 2 lots.

Why? Because the IPO managers will always group the numbers of lot you applied with all the rest of the applicants and allocated a ratio (or chance).

The range is usually like 1; 2-9; 10-19;20-49;50-99;100-499;500-999;>1000. There are variations but you get the idea.

So if you apply 3 lots or 6 lots, your chance of allocation is no different from those who applied 2 lots. And the number of lot allocated to you if you are successful is also the same.

So why get your money 'tied up' for nothing? If you cant apply for 10 lots, just apply 2.

I have applied 2 lots before, not sure for Mappletree or other IPO that is oversubscribed, and I got ZERO lots allocated, bad luck. So, I hope by applying more will increase chance of getting 1 or 2. And, it's only a few K, locked up for 1 week should still be allright..

 

[carey]

Just subscribe 6 lots.. If it's really oversubscribed, the most I will get will be only 1-2 lots..

Actually, there's no point trying for 6 lots...hahah

The bands are usually 1 lot, 2-10 lots, 11-20 lots etc

So your 6 lots is going to fall into the 2-10 lot basket...

Might as well just apply for 2 lots and save the interest

 

[carey]

I have applied 2 lots before, not sure for Mappletree or other IPO that is oversubscribed, and I got ZERO lots allocated, bad luck. So, I hope by applying more will increase chance of getting 1 or 2. And, it's only a few K, locked up for 1 week should still be allright..

It is not going to make a difference

Your bid is based on your CDP account - not because your 6 lots is 3 x 2 lots

 

[carey]

This is rough estimate of potential revenue from crude palm oil.
Current spot price per ton = US$1173
Rough yield per hector per year = 25 metric ton
Annual palm seed harvest = 190000 hector * 25 = 4.75M ton
Rough yield from seed to oil = 23.6%
Est annual crude palm oil = 0.236*4.75 = 1.121M ton
Est max annual revenue = 1.173*1.121=US$1.3B.

This stock is riding on growth potential - average age is 5 years and in 2 years' time, they will move into the peak productive stage

Hence the company gets a free upgrade in production (assuming no freak weather conditions)...

It could be another First Resources or Kencana Agri (both relatively young plantations)...

 

[chins]

If I want 10 to 20 lots, how many lots should I apply for in order to have a good chance of getting this amount since it is very likely to be oversubscribed many times?

 

[Paul Lee]

If I want 10 to 20 lots, how many lots should I apply for in order to have a good chance of getting this amount since it is very likely to be oversubscribed many times?

There are many factors in determining how many lots you will be allocated if you are successful.

However, given the prevailing market condition now (IPO market kinda lukewarm), I would estimate that you will need to apply for at least 100 lots.

If you are buying to keep, you will be better off buying from the market once everything stabilise in a few months times.

If you are hoping to stag, frankly I'm not sure if its worth it. But if you got the means, go for it!!

 

[chins]

There are many factors in determining how many lots you will be allocated if you are successful.

However, given the prevailing market condition now (IPO market kinda lukewarm), I would estimate that you will need to apply for at least 100 lots.

If you are buying to keep, you will be better off buying from the market once everything stabilise in a few months times.

If you are hoping to stag, frankly I'm not sure if its worth it. But if you got the means, go for it!!

I'm not familiar with the term 'stag', but I'm guessing you referring to selling off on the first trading day. That is kind of my intention, if it can fetch a good price on the first day. What are your concerns? The cordlife IPO did very well on the first 2 days, and I'm hoping that this IPO can do the same. Been banging my head for not applying for the cordlife IPO.

 

[steventay]

Not all IPO are equal

 

[haiz2006]

newbie question

1) When will we know how many lots we are allocated?
2) Tomorrow is the closing, meaning can I still buy on 10 April?

 

[Lost_Found]

1) When will we know how many lots we are allocated?
Check your online CDP account or you can go see how much you are refunded and do a calculation from there

2) Tomorrow is the closing, meaning can I still buy on 10 April?
yes, you can still ballot till the closing time which is 12 noon i think
you can check it out @ SGX

Any expert do correct me if i'm wrong, thks

 

[haiz2006]

hmmm

1) When will we know how many lots we are allocated?
Check your online CDP account or you can go see how much you are refunded and do a calculation from there

2) Tomorrow is the closing, meaning can I still buy on 10 April?
yes, you can still ballot till the closing time which is 12 noon i think
you can check it out @ SGX

Any expert do correct me if i'm wrong, thks

Thanks. But usually the refunded amount not so fast, will be around 1 week then refund.

so for this counter, if i go POSB ATM >services>IPO> then?

 

[Lost_Found]

Thanks. But usually the refunded amount not so fast, will be around 1 week then refund.

so for this counter, if i go POSB ATM >services>IPO> then?

then go CDP online see lor

 

[yantao]

If I want 10 to 20 lots, how many lots should I apply for in order to have a good chance of getting this amount since it is very likely to be oversubscribed many times?

Based on MCT @ $0.88 as a reference about 6 times over-subscribed,
01 - 09 lots : 01 lot
10 - 19 lots : 03 lots
20 - 49 lots : 06 lots
50 - 99 lots : 12 lots
100 - 199 lots : 26 lots
200 - 499 lots : 47 lots
500 - 999 lots : 120 lots
>1000 lots : 194 lots

 

[Paul Lee]

Thanks. But usually the refunded amount not so fast, will be around 1 week then refund.

so for this counter, if i go POSB ATM >services>IPO> then?

It does not take a week to have your money refunded.

Refund of your IPO application monies will usually be back ard 7 pm 2 days after the close of the IPO. So in this case, you should get your money back by 12 April.

The fastest way I know previously to check if you are successful in your IPO application is actually not through CDP online but CDP phone. Not sure if this is the case now cos havent applied for an IPO for a long time.

Next fastest should be through either Internet banking or phone banking - again 2 days after the IPO close. Unconfirmed rumours seems to suggest that those applying though UOB can get their result by 4-5pm. I used to use DBS and know the result by 7-8pm.

 

[die]

how u all sell off the IPO ? sorry i know noob question

 

[Vincent_G]

how u all sell off the IPO ? sorry i know noob question

Through your normal broker, like POEMS..

 

[chopra]

Their ceo 's degree is questionable. In straits times today.

 

[Lost_Found]

Balloting is now closed, hopefully everyone can huat on Thursday !!!!