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KOP To List Via Reverse Takeover; Chance To Buy In?

  1. KOP Limited will be trading on Catalist on 14 May 2014, after it completed a reverse takeover of Scorpio East Holdings.
  2. KOP is a global real estate development and hospitality business having completed marquee projects such The Ritz-Carlton Residences and The Hamilton Scotts.
  3. KOP could end up being the next Oxley which is currently trading at about 3 times its IPO price.

KOP Limited completed its reverse takeover of Scorpio East Holdings for a consideration of $150 million on 7 May 2014. A total of 714,285,714 shares were issued at $0.21 each. If you want to read about the original transaction, the announcement is here.

Principal Activities
KOP Properties is a global real estate development and hospitality business with interests in developments such as The Ritz-Carlton Residences, Singapore (which was recognised as the Best Condo Development (Singapore) at the South East Asia Property Awards 2012), and Montigo Resorts, Nongsa (which was accorded the Best Leisure Development (Indonesia) award at the International Property Awards (Asia Pacific 2012 – 2013)).

Some of its past developments include The Spazio, which is a redevelopment of an old office building at the heart of the Singapore Central Business district, as well as Hamilton Scotts, which features one of the world’s tallest en suite elevated car porch residence. The video below shows you how to park your super car ^_^

One of its latest project is a Winter Resort in Shanghai, dubbed Winterland Shanghai.

Share Placement

In order to comply with the Catalist listing rule, 15 percent of the Company will be held by public shareholders. As such, Hong Leong Finance placed out 80 million shares at $0.28 each. $17 million will be used to fund new projects and $3 million will be used for general working purposes. $0.28 will be the support “benchmark” set by new shareholders and $0.21 will be the support set by the vendors.

Listing date

KOP Limited will start trading on 14 May 2014 at 9am.

Management
I like this team of 2 ladies who have won over many fans with their never-say-die attitude and gung-ho image. They top their attitude with award winning projects and “marque” buildings.

They remind me of how SC Global first started and is probably more “atas” than Oxley. However, having said that, it is quite a chore and is difficult to analyze the company because not much financial performance of KOP Limited is being released. This is quite unlike a typical IPO where a prospectus is issued.

Oxley

Looking at how Oxley has performed since listing, I would have to eat my own words. The share price has risen more than 3x and is nothing short of spectacular. I believe KOP Limited will have good potential if they can continue to execute and has strong backing behind the company. We shall see how it performs post IPO but my gut feel is “it should likely do well on debut and will gradually move up over time”. A possible debut range is from 30-35 cents and it may double in the longer term …but only time will tell.

Having said that, I do believe that Hong Leong Finance has a good IPO track record.

Happy IPOing



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