Hyflux 6% Perpetual Securities

[SCG8866T]

Woah, Hyflux real equity is not even $1m? Their debt/equity ratio must be really high.

Sorry typo should be ard 700mil

 

[w1rbelw1nd]

Woah, Hyflux real equity is not even $1m? Their debt/equity ratio must be really high.

I guess Hyflux is raising funds using perpetual securities to keep their debt levels low since it's hidden as equity.

Eh scg8866t I think you leaved put $ '000 that is shown in e AR/FS la lol.

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[SCG8866T]

Eh scg8866t I think you leaved put $ '000 that is shown in e AR/FS la lol.

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Yea too used to omitting the 3 zeros lol. Still doesnt change the fact that Hyflux is the highest leveraged, followed by Oxley, then Aspial and lastly perennial. Unless im missing something.

 

[w1rbelw1nd]

Yea too used to omitting the 3 zeros lol. Still doesnt change the fact that Hyflux is the highest leveraged, followed by Oxley, then Aspial and lastly perennial. Unless im missing something.

True that. Considering the type of yield their perps are giving, and how indebted they are, they might be better off undergoing capital recycling by selling their water treatment plants to a business trust like KIT rather than letting it sit in the books and cast doubt on the financial stability.

It is actually quite common for these EPC,capital intensive companies to take up a lot of debt, since the ROA is relatively low and that the revenue stream is usually stable. Anyway too late for them to consider doing a biz trust le la haha

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[Asphodeli]

True that. Considering the type of yield their perps are giving, and how indebted they are, they might be better off undergoing capital recycling by selling their water treatment plants to a business trust like KIT rather than letting it sit in the books and cast doubt on the financial stability.

It is actually quite common for these EPC,capital intensive companies to take up a lot of debt, since the ROA is relatively low and that the revenue stream is usually stable. Anyway too late for them to consider doing a biz trust le la haha

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They tried that before, but in the end failed (forgot why) and they absorbed the trust.

 

[MrSinkie95]

http://singapore-ipos.blogspot.sg/2...s.html?utm_source=dlvr.it&utm_medium=facebook


mr ipo got buy

 

[coey]

Funny this ipo , uob cannot press. I thought ipo is usually available to the 3 banks

 

[lzydata]

Funny this ipo , uob cannot press. I thought ipo is usually available to the 3 banks

Hey you're right. Says on the OIS too, available only for DBS/POSB and OCBC ATMs and internet banking, not UOB.

I checked, UOB was in the list to apply for the 2011 perpetuals. What changed?

Also, the present issue is not eligible for CPF investment scheme funds, unlike the 2011 perpetuals.

 

[foozgarden]

uncles and auntie will buy

I am not pressing for sure

i rather get a good reit that pays 6% than a 6% junk bond

it's a junk bond

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how to define what is considered a junk bond?

debt to equity looks very scary
somemore not considering their perp securities are counted as equity
the real leverage is a lot high

perps are considered as equity too?

how so?

nope

but I think likely this one can open up 1-3%, can be stagged

new to bonds, what is the meaning of stagged?

http://singapore-ipos.blogspot.sg/2...s.html?utm_source=dlvr.it&utm_medium=facebook


mr ipo got buy

"DISTRIBUTION DEFERRAL: At issuer's discretion. Any deferred distributions are cumulative and on a compounding basis"

correct my understanding..
if missed payout for one semi-annual distribution, it will accumlate to the next payout?
and if they miss the payout, they will not distribute to their shareholders?
the risk to the perp holders seem very minimise.
even with SOR 0%, it is pretty much a guaranteed 6% yield.
only downside is the the bond falls below par value.

looking at the entirety of the bond, seems like too good to be true?

 

[Opps-gal]

http://bullythebear.blogspot.sg/2016/05/hyflux-6-perpetual-securities.html#.V0E2POSUMWI

Anybody pressing? Is it a good buy?

 

[arctician]

pressed already..i am very unlucky with ipo

most of the time get zero

 

[arctician]

based on 30% allocation and 3% upside, can make $700 ..hope to get some

 

[arctician]

i expect this to open around 1.02

i guess it will be 1.03...right now the 2011 perps are at 100.2 already due to redemption in 2018

too bad i low on cash otherwise can bid more

 

[arctician]

u pressed how many?

already said ma assume 30% allocation with 3% upside yield $700

jonathan said...

hi! is it advisable to press to stag??
21 May 2016 at 11:52
Mr. IPO said...

Hmm.. Tough question. If you can stag then it means banks or retail investors have mispriced it. "Retail" investors can get over exuberance sometimes ....
21 May 2016 at 13:35

for ppl who have to seek advice of others before entering a trade, advice is dont buy

 

[arctician]

thats just a generic statement..some ipos are priced to sell

anyway i lost out on the private placement via dbs..so now bobian have to bid in public

 

[starfish.starfish]

Hmmm $50k buy this or put FD....

 

[starfish.starfish]

Jin rich sia

U > 200k in stocks already even more rich loh.

 

[starfish.starfish]

u can hoot 50k on one bond, your portfolio at least 500k sia

I like your leap of assumption but it's buay zhun. Lol

 

[Average]

Hyflux waste to energy plant is jskm. Branded as largest of its kind in region (or world i forgot). Currently under construction in tuas.

 

[sgdividends]

Based on previous balloting table results, say i only want $20k....hoot $41 k most efficient? assuming got it....