Sunmart IPO on SGX

Sunmart Holdings Limited, a Chinese manufacturing firm, launched its IPO on the Singapore Exchange Friday.

Sunmart will be offering 102 million new shares, priced at S$0.25 per share. The firm intends to raise net proceeds of $21.1 million, 25.4% of its enlarged share capital. Of the 102 million shares, 5.1 million is open to the public while the remaining 96.9 million shares are under placement.

This represents a historical PE ratio of 7.8 times, given the firm's FY2006 earnings per share of 3.2 cents.

Sunmart said it will use the net proceeds to finance its new plant, which will start Phase one in the first-half of 2008, and the remaining funds will be used to upgrade the company's existing plant and as working capital.

The company has reported healthy growth of revenue and profit from FY2004 to FY2006. Revenue grew RMB 104.1 million, from RMB 132.6 million in FY2004 to RMB 236.7 million in FY2006. Profit before tax also grew by RMB 38.7 million from RMB 13 million in FY2004 to RMB 51.7 million in FY2006.

Sunmart Holdings Limited is based in Jiangsu City, Jiangsu Province. It was established in 1997, and exports to over 80 countries around the world. The company is focused mainly in the production and sale of a wide range of spray products to be used in consumer goods, pharmaceutical products and health-supplements.