Declout

Singapore's first Vertical Games Domain Cloud Company to list on SGX!

IPO Price : 25c

consisting of 31million Placement shares.

DeClout Limited (DeClout or the Group), a provider of next generation technology
services offering a full suite of information and communications technology (ICT)
solutions, will issue 31 million new shares, at S$0.25 each, in its initial public offering
(IPO).
The Group will be one of the first games cloud providers to be listed on the Catalist
Board of the Singapore Exchange Securities Trading Limited (SGX-ST).
DeClout’s VDCs are industry-specific, customised communities powered by neutral
cloud platforms that enable key stakeholders – consumers and businesses – to
communicate, interact and collaborate seamlessly.
The IPO is expected to raise gross proceeds of S$7.75 million, which will be used
largely to launch DeClout’s first VDC – the games cloud. The remaining proceeds will
fund the expansion of the Group’s IT infrastructure services business and general
working capital requirements.
Mr Vesmond Wong, the Chairman and Group Chief Executive Officer of DeClout,
said: “The listing will mark a significant milestone for DeClout as we continue to pursue
our ambition of becoming a leading next generation technology service provider. In
a short span of three years, we have already established a name for ourselves
through our IT infrastructure services. The IPO will enable us to capitalise on exciting
opportunities generated by our VDCs in the near future.”

OK, now this counts as a type of business I completely am clueless about!

Me clueless too.
Lets hope the non-techie shareholders will not be clout by its post ipo performance.

Need more information to understand this company but several things are red flags for me:

1) Company founded only in 2011. For a tech company, if the value proposition is compelling, I would have expected at least 2 - 3 rounds of funding. SGD $7million isn't a lot. The fact that they need to go public now says a lot about things.

2) Product is not ready. No products, means no existing customers.

3) Barrier of entry is fairly low. There are a lot of 'cloud' inspired start-ups in this space now... probably explains why they are going public at this early stage.

They have a product lah. Its called Games Mana. They are hoping to become the next Ten Cent Holdings!

Basically, they just need to score an exclusive rights to publish a worldwide gaming hit like World of Warcraft in Asia and the revenues will flood in like waterfall.

They are also developing an in game unified payment system where gamers can shell out money to buy Declout's virtual currency and use it to exchange for virtual goods!

The company already has an existing IT Infrastructure business which produces steady cashflow.

3 year financial statements available here -

http://declout.listedcompany.com/financials.html

The management does not look like nerds..haha. They look more like businessmen that are earning a living in IT industry.

Management team that has nerds...
http://www.apple.com/sg/pr/bios/

It is hard to find nerds in Singapore companies' management team.

(17-10-2012, 08:59 PM)propertyinvestor Wrote: They have a product lah. Its called Games Mana. They are hoping to become the next Ten Cent Holdings!

Never thought of them as ten cent holdings, good one! But dun like that lah, they are a classic 10-bagger. Still wondering why I looked at it for so long but never bought a single share!

Online system that can handle heavy traffic like world of warcraft, jobsite monster.com or facebook are not cheap. These systems are not like in the movies 1-2 pc located in some garage or some nerdy kid's bedroom.

I read years ago monster.com has over 3000+ servers, when you browse the site you are actually hitting one of their 300 web servers that are optimized load balanced for heavy traffic so people won't feel a thing when they upload their resume not even a drag. 1 server can cost anything from 2000 - 20,000 depending what it is for, haven't count things like network appliances miles and miles of network cabling and licenses for software, security and also IT hires to manage the site to be up 24 x 7 x 365

If you think that is an enormous expense I got news for you, facebook has over 30k servers, over 3000 of those are webservers that are load balanced, they employ an army of thousands of IT engineers and software people to manage their site just for people upload photos chit chat with friends troll for likes all of which doesn't generate much income. Why do you think they needed an IPO?

So you want to build an infrastructure for global gaming site like WOW we talking about at least 100 servers minimum, hosting fees, IT hires etc ... not cheap leh

The amount they aim to garner is just under $8M.
Why cant they borrow from the financial institutions?
Why do they want to go through the equity route (which has the highest cost of capital)?

Either this is a business with high risk, competitive or like what LionFlyer said, low barrier of entry.