KINV

Buy @ $0.91

Newly listed Biz Trust @ $0.97, on 29-May 2pm. Was spun off from MIIF and was called TBC, with assets in Taiwan and in the biz of Pay TV mainly but also includes Broadband services. Yield = 8.011%, forecasted for FY13 (Dec) with DPU = 7.29ct (will be prorated from time of listing) ; DPU (FY14) = 8.25% or Yield = 9.066% @ $0.91. Altho' NAV = $0.924 (my own calculation) looks good as current prices is at a discount, it's mainly from IA (Intangible Asset) and is not very useful for me. No gearing figure was found in the IPO prospectus but should be in the high 30% (also not so meaningful for me as IA dominates). Perhaps, the Cash Flow statement is going to be the more useful analysis to determine their ability to pay the DPUs. Will have to keep an eye on the Finance Expenses which includes Interest (recurring expenses) and CAPEX (this is after all a hi CAPEX biz).

Altho' I'd usually avoid an IPO that goes below IPO price during the stabilising period (hi chance of dropping further if stabilisation ceases), I'd noticed that the total substantial shareholders' interest (those with >5%) is now ~34% vs 6.4% from IPO prospectus. They are Prudential (8.1425%), Morgan Stanley (11.0974%), Credit Suisse (7.6022%) & JP Morgan (7.15%). For MS & CS, it'd appear that those were held for their clients (collectively) and were from IPO subscription @ $0.97. For Prudential, the bulk (6.4%) was from IPO and the balance from open market @ $0.92. For JPM, they're the stabilising manager.

My current thinking is to tag on the above info I'd collated and perhaps ride on the coat-tails of the stabilising mgr (30-days tour of duty) for a short term trade. Let's see if they'll try to lift it towards IPO price of $0.97. Worst case, hold for the DPU ie. Yield. 😀