Home Investment IPO Snapshot Amtek Engg - Few Investment Merits

Amtek Engg - Few Investment Merits

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Amtek Engineering is a Singapore-based precision engineering company, serving the computer, automotive and electronics industries, with facilities mainly in Singapore and China. In 100 words or less, buy, stag or avoid?

Upsides

  • Highly diversified capabilities and customers

Downsides

  • Profit and revenue have been on a downtrend since 2008 (loss in 2009)
  • Historical price-earnings ratio of 33 times at IPO price of S$1.30
  • Price to book-value ratio of 4.1 times
  • Book-building exercise very poorly received, with offer price at bottom of S$1.30 to $1.50 range and number of shares offered cut
  • IPO comprises 100% vendor shares i.e. an exit by current shareholders
  • Company was drained of capital before IPO

Similar to

  • Fischer Tech
  • Innotek
  • Spindex Industries

Conclusion

  • Avoid

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Last Updated ( Monday, 29 November 2010 04:14 )  
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