Kunda Technology Floats IPO in Singapore

Filed in archive IPOs on October 4, 2008

shenzhen-based Kunda Technology has announced an IPO on Singapore 's stock exchange. The IPO share price is 21.5 cents. The new shares will represent about 21 percent of Kunda Technology's enlarged share capital of 320 million shares, according to The Business Times in Singapore.

China Kunda Technology makes precision moulds and plastic injection parts. The company had postponed an earlier IPO. It hopes to using the funds raise to about US$8 million to pay for business acquisitions, investment in new plant and production facilities, and for research & development.

Singapore IPOs gave some financial details on the company. According to them, unaudited 9 months sales for 2008 are HK$76.55m and profit after tax is HK$39.448m. That puts projected full year profit at about HK$102m and net projected profit for the year around HK$52.6m. An IPO price of 21.5 cents means the EPS is valued at 7x PE.

Singapore IPOs also had this to say about the offering:

Frankly, under such economic climate, i cant foresee the company to do better in 2009 than in 2008, perhaps that is one reason why it has to list NOW instead of postponing the IPO.

Trading starts October 9th.


Photo courtesy of iStockphoto, Peter Seager