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Singapore stock market and companies daily report (Overseas Education, Rotary Engineering, OSIM) (February 01, 2013)

Contributed by Shares Investment

Overseas Education Launches IPO To Raise $56.1m
Overseas Education (OEL) has launched its initial public offering (IPO) to raise $56.1 million. OEL is a private foreign system school in Singapore offering the K-12 International Baccalaureate curriculum within a globalised multi-cultural environment to children aged between 3 and 18 years of expatriate parents who are senior executives and professionals working and living in Singapore. The 125 million shares to be issued, comprising of 3.75 million shares for the public and 121.3 million placement shares, are priced at $0.48 apiece. Twenty-five million additional shares are also available under its over-allotment option. OEL is expected to be listed on the Singapore Stock Exchange on 7 February 2013.
Significance: The issue price of $0.48 is 6.6 times OEL’s earnings per share of $0.073 for the financial year ended 31 December 2011. Meanwhile, OEL also mentioned that it will pay dividends of at least 50 percent of the group’s net profit after tax to shareholders for each financial year.

Rotary Secures $300m Contract To Expand Pulau Busing Oil Terminal
Rotary Engineering has secured a $300 million engineering, procurement and construction for the expansion of the oil terminal at Pulau Busing. Rotary has been appointed as the main EPC contractor for the expansion of the oil terminal at Pulau Busing. The contract is for a period of two years and is expected to start immediately. The scope of work involves the engineering design, procurement and construction of a 800,000 cubic metre (cbm) facility. Pulau Busing is an island located off the south-western coast of Singapore, north of Pulau Hantu and west of Pulau Bukom. The island is owned by the JTC Corporation and is leased to Tankstore, a petroleum storage company.
Significance: This new win has given Rotary a boost and strengthened its reputation as a reliable and leading EPC player. With this win, Rotary’s current order book stands at approximately $750 million.

OSIM’s FY12 Profit Jumps 26% To $87m
Asia’s No1 brand OSIM International’s (OSIM) earnings for the fourth quarter ended 31 December 2012 jumped 33 percent year-on-year to $22.6 million, while turnover rose 8.3 percent to $154.6 million. Full-year profit jumped 26 percent from the previous year to $87 million, while turnover rose 9 percent to $601.7 million. Company attributed the improved results to better product mix of massage chairs, massage sofas, foot massagers, head massagers, neck and shoulder massagers and nutritional supplements. Meanwhile the directors are pleased to recommend a final dividend of $0.01 per share and a special dividend of $0.01 per share.
Significance: OSIM has achieved third consecutive year of record profit and 16 consecutive quarters of profit growth despite a tough economic environment. Moving forward, OSIM is targeting to open 30 to 40 OSIM outlets in 2013. To date, OSIM has 278 OSIM outlets in 43 cities in China.