UE E&C

[jake12]

UE E&C, the engineering and construction subsidiary of United Engineers, today announced its initial public offering of 70 million shares priced at $0.48 each, or 3.1 times FY2009 earnings.

Out of the 70 million shares, 10 million offering shares are available to the public for subscription, while the remaining 60 million offering shares are allocated for placement. The offering represents 25.9% of UECL’s enlarged post-offering share capital of 270 million shares.

Of the $33.6 million raised, $15 million will be used to fund property development projects undertaken in connection with its construction business; $8 million will be used to fund its expansion; $5 million to expand its power solution business; and $0.7 million for working capital purposes.

In connection with the IPO, UECL has granted to IPO issue manager, underwriter and placement agent OCBC Bank an over-allotment option of up to an aggregate of 10.5 million additional new shares, representing 15% of the total number of offering shares.

The IPO will open at 9 a.m. on Feb 16 and close at 12 noon on Feb 22. Trading of UE E&C on the Mainboard will start on Feb 25.

[egghead]

FY2010 Results is out. EPS of 19.9 cents base on 200 mil pre-IPO. If re-base it to 270 mil post IPO, EPS will be 14.7 cents. At a price of $0.415, PE is only 5.6!

[egghead]

The PE should be 2.8 instead of 5.6.

[crabcrab]

UE (E&C) - $0.465... There is good accumulation and buy-up between $0.42 - $0.45 by both stabilising Manager and new investors... Price has been steadily climbing up from $0.415 despite market weakness...

[piggo]

Comparison with other property construction counters in SGX, it does look quite undervalued... but guess we really need more data.

[crabcrab]

UE E&C LTD ($0.45) - the Company has just announced its full year results with a profit of over $60+ million, EPS of $0.25 per share and declared a dividend of 6cts per share given a dividend yield of more than 13.33%. P/E ratio is currently less than 2 times..... Expect that the market will re-rate this stock very soon...... Good Luck!

[crabcrab]

UE E&C LTD ($0.57) - Indeed, the company has been re-rated by the market after its announcement of the maiden full year results after its listing. The declared 6 cts dividend will boost the stock even further..... $0.60 and above are likely insight...

[crabcrab]

UE E&C LTD ($0.595) - Today, it hit a new high of $0.605.... Expect to pull back to around $0.59 level before inching up again... my guess is that there isn't many free float of shares in the market at this juncture as only 70 million shares are in the hand of the general public....

[ValueBeliever]

I believe this is going to be a value play on dividend. UE and more so OCBC, Straits are expecting big payout in good years and on avg year, the dividend will also be paid to attract shldrs that want yield.

I was slow in getting in, didnt know the EPS was that high base on available free float. How many construction Co. that can have the combination of parent doing development and giving a child the job and at the same time making sure that the child pay the parent a good allowance. The money flows man!!

Important is Jackson better get his sum right - otherwise those board member will want him removed! They dont care who Ng Ser Ming is - remove.

[crabcrab]

UE E&C LTD ($0.58) - Currently undergoing consolidation phase. However, high accumulation prevents the stock to go any lower than $0.565 currently.