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Courts Asia
01-10-2012, 11:27 PM.
Post: #11
RE: Courts Asia (IPO)
(01-10-2012, 11:45 AM)yeokiwi Wrote: Courts' micro-loans have been around for many years and the company had gone through SARS, 2008 financial meltdown, asia financial crisis.
These micro-loans are pretty popular among those families that like to buy things on credits.

Their ability to adjust the interest rate and downpayment means that they can tune it to compensate for the bad receivables.
The low unemployment rate in Singapore and Malaysia means that their % of bad receivables will continue to be low.

I remember visiting their warehouse in Bt Timah to view their repossessed furniture and appliances many years ago. They were cheap though there were some defects. I see that their showrooms are now mainly in the HDB heartlands and seem to be tapping on the SERS flats and new condos' occupants. A case in point is the new store at Clementi. Wonder if this is the strategy. They're in a highly competitive business, large overheads, thin margins, etc. They are competing on different fronts with more focused retailers.
Where to obtain the IPO prospectus?

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02-10-2012, 08:55 AM.
Post: #12
RE: Courts Asia (IPO)
Prospectus can be downloaded from MAS OPERA site.

http://masnet.mas.gov.sg/opera/sdrprosp....s?OpenView

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02-10-2012, 10:37 AM. (This post was last modified: 02-10-2012, 11:43 AM by dzwm87.)
Post: #13
RE: Courts Asia (IPO)
I looked at some of their products which are sold on installment credits.

The effective i/r ranges around 20+% on household appliance such as LED TV/ fridge.

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02-10-2012, 11:38 AM.
Post: #14
RE: Courts Asia (IPO)
(02-10-2012, 10:37 AM)dzwm87 Wrote: I looked at some of their products which are sold on installment credits.

The effective i/r is crazy - ranging from 50 to 80% on household appliance such as LED TV/ fridge.

The credit charge include not only the interest charged, but also service charged and misc "insurance-like" fee e.g. installment waiver plan

The credit service seem much more popular in Malaysia than in Singapore, maybe due to their bank interest rate
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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02-10-2012, 11:44 AM.
Post: #15
RE: Courts Asia (IPO)
(02-10-2012, 11:38 AM)CityFarmer Wrote: The credit charge include not only the interest charged, but also service charged and misc "insurance-like" fee e.g. installment waiver plan

The credit service seem much more popular in Malaysia than in Singapore, maybe due to their bank interest rate

Miscalculation - 20+% effective

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08-10-2012, 10:47 PM.
Post: #16
RE: Courts Asia (IPO)
SINGAPORE: Courts Asia has launched an initial public offering (IPO) in Singapore to raise S$137 million in gross proceeds.

Of this, S$40 million, or 30 per cent of the gross proceeds, will be used for the electronics and furniture retailer's expansion into the Indonesian market, while S$86 million, or 63 per cent, raised from the sales of vendor shares will return to Courts Asia's owner - the Asia Retail Group backed by Barings Private Equity.

The balance will be used for working capital purpose and listings expenses.

Courts Asia is launching 178 million shares at an offer price of S$0.77 per share - the top end of its indicative price range.

This brings its market capitalisation to about S$431 million.

The retailer is offering 60 million new shares and its vendor, Singapore Retail Group is offering 118 million existing shares for subscription.

This is the second time the retailer with 70 stories in Singapore and Malaysia is gunning for a listing in two years.

Its CEO, Terry O' Connor, said market conditions are more benign this time and the firm is confident of its fundamentals.

According to the prospectus, four cornerstone investors will take up 44 per cent of the enlarged offering.

They include JF Asset Management, New Silk Road Investment, Target Asset Management and Value Partners Hong Kong.

While the firm's chief executive and chief financial officer will purchase 14.3 million shares under the Management Subscription Tranche scheme.

The retailer is planning to open a store in eastern Jakarta in 2014. Plans are in the pipeline to open large format stores in other locations in Indonesia.

Mr Terry O' Connor said: "The Jakarta market is booming typically our categories are growing at 15 to 20 per cent per annum. And it's very under penetrated with the market leader in Indonesia having less than 1.5 per cent market share so that offers great long term prospects in terms of an emerging middle class and great spending in our categories."

Over the next two to three years, the retailer also intends to grow its store network by an average of six stores a year in Malaysia and one store a year in Singapore.

The public offer will open on the morning of 09 October and close on 11 October.

Courts Asia is expected to start trading on the Singapore Exchange on 15 October.

The Hongkong and Shanghai Banking Corp Ltd is the sole global coordinator, bookrunner, underwriter and issue manager of the IPO.

UOB Kay Hian Private Ltd is the public offer coordinator and sub-placement agent.

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08-10-2012, 11:59 PM.
Post: #17
RE: Courts Asia (IPO)
Nice.
Before the impact of global slowdown hits the retail sales.
If the Indonesian market is so promising, I am sure they can find enough private funds for the expansion plan.
These private equity people deserves their millions i must say
Nice.

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09-10-2012, 08:21 AM.
Post: #18
RE: Courts Asia (IPO)
Value cornerstone investor:

http://www.targetasset.com/
http://www.nsr.com.sg/html/contactus.html
http://www.valuepartners.com.hk/en/fund-...rview.html

Private equity selling to value investor???

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09-10-2012, 10:14 AM.
Post: #19
RE: Courts Asia (IPO)
haha... good one. maybe private equities are into charity nowadays.

(09-10-2012, 08:21 AM)shanrui_91 Wrote: Private equity selling to value investor???

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09-10-2012, 10:46 AM.
Post: #20
RE: Courts Asia (IPO)
(09-10-2012, 10:14 AM)wee Wrote: haha... good one. maybe private equities are into charity nowadays.

(09-10-2012, 08:21 AM)shanrui_91 Wrote: Private equity selling to value investor???

And pigs will fly...Big Grin

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