SK Jewellery Group (formerly: Soo Kee Group)

[cyclone]

Subject to the approval of shareholders of the Company at the extraordinary general meeting of the Company to be held at 11.00 a.m. on 30 April 2018, the name of the Company is proposed to be changed from "Soo Kee Group Ltd." to "SK Jewellery Group Limited".

[cyclone]

SK Jewellery Group continues regional expansion with opening of Love & Co.’s flagship store in Bangkok, Thailand

Highlights :
1. Store is located at CentralWorld, the largest lifestyle shopping destination in Bangkok
2. Partnering the Group in its new foray is Aurora Design Co. Ltd, a leading retailer of gold ornament and fine jewellery in Thailand
3. Seeks to grow its geographical footprint in the region while capitalising on the untapped opportunities existing in Thailand’s wedding jewellery market
4. Group to continue strengthening its presence in Thailand with upcoming store openings planned for the current fiscal year.

More details in http://infopub.sgx.com/FileOpen/SK%20Jew...eID=513008

Aurora group website : https://aurora.co.th/

[¯|_(ツ)_/¯]

Offer price: 15cents
https://links.sgx.com/FileOpen/Offeror%2...eID=630222

Stay home and stay safe, everyone.

[hh488]

It was listed 5 years ago at IPO price of 30 ct.

Now wish to get out at half the price saying to save on expenses & cost relating to maintaining it as a listed status.

What the rationale of listing in the first place.

To be fair to those subscribers, they should delist at the same IPO price.  I don't think they suffer any financial losses doing that.

[desmondxyz]

It was listed 5 years ago at IPO price of 30 ct.

Now wish to get out at half the price saying to save on expenses & cost relating to maintaining it as a listed status.

What the rationale of listing in the first place.

To be fair to those subscribers, they should delist at the same IPO price.  I don't think they suffer any financial losses doing that.

That's how the rich get richer, the poor get poorer... 

[Corgitator]

It was listed 5 years ago at IPO price of 30 ct.

Now wish to get out at half the price saying to save on expenses & cost relating to maintaining it as a listed status.

What the rationale of listing in the first place.

To be fair to those subscribers, they should delist at the same IPO price.  I don't think they suffer any financial losses doing that.

To be fair, they didn't force anyone to subscribe back then, and they are also not forcing anyone to accept the offer now. And at IPO, they were doing around $11M in profits - it's half of that now.

And having been investing for 20 years, I seldom see minority shareholders that are ever happy with an exit offer haha. Humans being greedy, most will generally say that "offer is too low!".

My uncle was complaining to me how he thought an offer price (which was at around 200% premium to last traded) was too low because the PB is only 0.3 based on the exit price. I asked him why didn't he buy more at 0.1 PB since it's was so darn cheap, and he said because it was a terrible business. But somehow after a GO was made, this terrible business became a "great business" that deserves a higher price. Always makes me chuckle examining human biases.

[weijian]

It was listed 5 years ago at IPO price of 30 ct.

Now wish to get out at half the price saying to save on expenses & cost relating to maintaining it as a listed status.

What the rationale of listing in the first place.

To be fair to those subscribers, they should delist at the same IPO price.  I don't think they suffer any financial losses doing that.

SK listed back in 2015, raising ~31.6mil of net proceeds. Majority of the proceeds were used for expansion of business, new HQ costs and repayment of loans. The remaining ~30% were used for working capital. As the old adage goes, there are probably a lot of reasons to sell, but just one reason if you are buying - ie. you believe that it is cheap and buying it will allow you to make money.

SK was IPO in 2015 at 30cts - With a NAV of ~10cents then (where majority of assets are inventory for retail jewellers), one was paying a 2x premium for the intangible brand and management-know-how.

Fast forward to today, SK received a Mgt buyout offer at 15cents - With a NAV of ~11.5cts (1H2020), it is 0.3x premium for the intangible brand and management-know-how.

So it seems like SK Mgt was selling their brand/expertise for a premium back in 2015. Fast forward this year, they are buying it back.

[brattzz]

maybe they had a few tonnes of gold bars lying around, sufficient to buy back already and sell the gold bars off...

[sgmystique]

It was listed 5 years ago at IPO price of 30 ct.

Now wish to get out at half the price saying to save on expenses & cost relating to maintaining it as a listed status.

What the rationale of listing in the first place.

To be fair to those subscribers, they should delist at the same IPO price.  I don't think they suffer any financial losses doing that.

To be fair, they didn't force anyone to subscribe back then, and they are also not forcing anyone to accept the offer now. And at IPO, they were doing around $11M in profits - it's half of that now.

And having been investing for 20 years, I seldom see minority shareholders that are ever happy with an exit offer haha. Humans being greedy, most will generally say that "offer is too low!".

My uncle was complaining to me how he thought an offer price (which was at around 200% premium to last traded) was too low because the PB is only 0.3 based on the exit price. I asked him why didn't he buy more at 0.1 PB since it's was so darn cheap, and he said because it was a terrible business. But somehow after a GO was made, this terrible business became a "great business" that deserves a higher price. Always makes me chuckle examining human biases.

I cannot but agree with you Corgitator. However, it is a relatively fewer number of investors who can truly ascertain value when they see it (And overvaluation as well). The rest are fine with letting the market and their emotions decide what is right and what is wrong. No wonder so many get burnt time and again. I know because I was one of them and hopefully I am getting a little better now after spending a long long time in the markets