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(Post 1 of 1035) 06/19/2001.21:22:02 |
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· Hong Kong-based Willas-Array Electronics (Holdings) Limited is one of the leading component distributors in Hong Kong with sales of more than HK$1.1 billion SINGAPORE - 19 JUNE 2001 - Willas-Array Electronics (Holdings) Limited (“Willas-Array”), one of the leading Hong Kong-based distributor of electronic components in Hong Kong, the People’s Republic of China (PRC) and the Asia-Pacific region, announced today that it has received in-principle approval from the Singapore Exchange Securities Trading Limited (“SGX-ST”) for a listing on the SGX Main Board. Overseas Union Bank Limited is the Manager, Underwriter and Placement Agent for the initial public offering of shares. Established since the early 1980s, Willas-Array is principally engaged in the distribution of active and passive electronic components for use in the audio/video, telecommunications, industrial, consumer and computer segments. Its main markets are in Hong Kong and the PRC. “We have a strong and established foothold in the PRC as we have been there for eight years. It is widely known that the PRC has a fast growing electronics industry. As highlighted in the February 2000 research report by Cahners In-Stat Group, PRC is touted to become the world’s second largest market for semiconductors by 2010,” said Mr Lawrence Leung, Executive Chairman. “With the increasing trend of relocation by the foreign OEMs and contract manufacturers to the PRC, and the increasing domestic consumption of consumer items such as electrical appliances and mobile phones, we believe that Willas-Array is well positioned to tap into this growth opportunity with its knowledge of the PRC market, experience and track record,” he added. In the PRC, Willas-Array is supported by four representative offices – Beijing to cover northern PRC; Shanghai to cover central PRC; and Shenzhen and Guangzhou to cover southern PRC. Headquartered in Hong Kong, the Group also has a distribution centre in Singapore and a representative office in Malaysia. One of Willas-Array’s key strengths is its application and development capabilities. The Group offers a wide array of value-added services ranging from kit solutions, where its engineers consolidate all suitable components from different principals for specific application design-in, technical advice, application support and failure analysis . “Our technical expertise, coupled with our extensive product range of more than 10,000 items, enables us to develop or offer alternative solutions by recommending suitable components from different principals to achieve the greatest cost efficiency for our customers. This is a service that is especially significant to the Hong Kong and PRC medium-sized enterprises which need technical services,” said Managing Director, Mr Kwok Chan Cheung. As a testimony of its quality products, value-added services and after-sales support, Willas-Array enjoys a high level of customer loyalty. About 90% of the Group’s sales are derived from repeat orders. Willas-Array, with a customer base of more than 2,000 companies, caters to companies of various sizes and from different segments. These include established names such as Flextronics Manufacturing (Hong Kong) Ltd., VTech Telecommunications Ltd and TEAC Audio (China) Co. Ltd in Hong Kong and Hui Yang Legend Computer Company Ltd and Wuxi Little Swan Co Ltd in the PRC. “With such a diverse customer base, Willas-Array is in a good position to deal with any negative decline in a single industry as well as from termination of service from a customer. Our close ties with our major principals which span over 15 years is another factor that strengthens the Willas-Array’s position in the market,” said Mr Kwok. Willas-Array’s long-standing principals include companies such as STMicroelectronics Asia Pacific (Pte) Ltd, Murata Company Ltd, Toshiba Electronics Asia Ltd and New Japan Radio Company Ltd. As a testimony of its distribution strength and ties with its principals, Willas-Array has received numerous awards from its principals, including those from STMicroelectronics Asia Pacific (Pte) Ltd for being the Top Distributor in Hong Kong/China for four consecutive years from 1997 to 2000. For the year ended 31 March 2000, Willas-Array achieved a turnover of HK$1.14 billion (S$248.9 million) and profit before tax of HK$44.2 million (S$9.7 million). For the six months ended 30 September 2000, Willas-Array achieved a turnover of HK$672.4 million (S$146.2 million) and profit before tax of HK$41.3 million (S$9.0 million). |
| (Post 2 of 1035) 06/22/2001.09:49:13 |
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hi all
any body got any views on this counter heard that this counter is good for a punt will appreciate some views cheers |
| (Post 3 of 1035) 06/22/2001.10:56:51 |
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Willas Array Electronics
22/06/2001 Find out more about the company from executive chairman, Mr Lawrence Leung in our interview with him. http://www.gohdirect.com/NASApp/spaf/index_econtent.jsp?body=gohinteractive/index_gohinteractive.jsp |
| (Post 4 of 1035) 06/22/2001.14:38:28 |
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IPO Opening Alert!
Willas-Array IPO is now open for subscription! Willas-Array is principally engaged in the distribution & marketing of electronics components in Hong Kong, the PRC and the Asia Pacific region. The turnover and operating results by geographical regions are segmented according to the geographical distribution of our customers which are mainly from Hong Kong and the PRC. Their customers in Hong Kong and the PRC contributed approximately 96 per cent of our total turnover for FY2001. The remaining 4 per cent. of their turnover were from countries such as Singapore, Malaysia and the USA. Invitation for Public offer - 3 million shares Placement tranche - 45.15 million shares Reserved tranche - 5.35 million shares |
| (Post 5 of 1035) 06/22/2001.15:36:23 |
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PRESS RELEASE
· Proceeds of S$12.3 million will be used mainly for business expansion Singapore - 22 June 2001 - Willas-Array Electronics (Holdings) Limited (Willas-Array), one of the leading Hong Kong-based distributors of electronic components in Hong Kong, the People’s Republic of China (PRC) and the Asia Pacific region, today launched its initial public offering of 53.5 million shares at 28 cents each in conjunction with its Main Board listing. Of the total initial public offering shares, 3 million shares will be offered to the public and 50.5 million shares will be placed out. The issue price of 28 cents represents a price earnings ratio of 5.1 times based on the unaudited net earnings per share for the financial year ended 31 March 2001. The invitation, which opens on 22 June 2001, will close at noon on 28 June 2001. Trading of Willas-Array’s shares, in board lots of 1,000 shares each, will commence on a “when issued” basis on 2 July 2001. Representing approximately 20% of Willas-Array’s enlarged post-invitation share capital of 266 million shares, this invitation is expected to raise net proceeds of approximately S$12.3 million for the Group, which will be used as follows: - - Approximately S$3 million to upgrade the application and development capabilities; - Approximately S$2.5 million to implement e-business capabilities; - Approximately S$3.0 million to set up and develop new liaison offices in the PRC; - Approximately S$1.8 million to upgrade the marketing team; and - Approximately S$2.0 million for working capital. Overseas Union Bank Limited (OUB) is the Manager, Underwriter and Lead Placement Agent for the initial public offering. Established since the early 1980s, Willas-Array is principally engaged in the distribution of active and passive electronic components for use in the audio/video, telecommunications, industrial, consumer and computer segments. Backed by long-standing relationships with over 20 reputable Principals, Willas-Array carries a wide product mix distributing and marketing in excess of 10,000 product items which cater to over 2,000 active customers. Its main markets are in Hong Kong and the PRC. Recognising the dramatic changes in the electronic distribution landscape in Hong Kong and the PRC over the past few years, Willas-Array established its application and development department in 1985 in an effort to expand its market lead and meet the increasing demand of its customers for more value-added services. In 1997, the Group further expanded these services by setting up a technical marketing department. “The distinguishing factor about Willas-Array is our “demand creation” strategy. Our wide spectrum of products and strong in-house technical engineering support allow us to pro-actively undertake design and application to create the most cost efficient solutions for our customers. These “kit” solutions we sell to our customers “create demand” for our components which provide an earnings base for us. About 60% of the Group’s sales are derived from kit solutions,” said Executive Chairman, Mr Lawrence Leung. Willas-Array’s strength in kit solutions is particularly well-received by its customer base because the service helps decrease inventory levels, lower supplier and procurement costs, reduce cycle times, and simplify materials planning activities. Willas-Array’s customer base include established names such as Flextronics Manufacturing (Hong Kong) Ltd., VTech Telecommunications Ltd and TEAC Audio (China) Co. Ltd in Hong Kong; and Hui Yang Legend Computer Company Ltd and Wuxi Little Swan Co Ltd in the PRC. Willas-Array has grown from strength to strength as a result of its proven track record and good market reputation. The Group has continued to show consistent profitability since it started business, despite the slowdown in the Hong Kong economy during the financial crisis. For the year ended 31 March 2001, the Group enjoyed a record turnover of HK$1.2 billion (S$268.7 million) and profit before tax of HK$63.8 million (S$11.8). This represented a 5.6% and 44.4% increase over the previous year respectively. Industry Prospects and Growth Strategies On prospects, Mr Leung believes that the Group’s growth potential lies in its entrenched market position in the PRC which has excellent market prospects: · The PRC could become the world’s second largest market for electronic components by 20101. · The PRC’s ascension to the World Trade Organisation will give a significant boost to inflow of foreign investments in the semiconductor industry . · The increasing trend of relocation of manufacturing operations by foreign MNCs to the PRC to take advantage of the lower cost of operations3. This is evident from the recent move by Flextronics International to close down the bulk of its Singapore operations and shift production to lower-cost sites in PRC. In the PRC, Willas-Array has established a network of representative offices strategically located in Beijing, Guangzhou, Shanghai, and Shenzhen, as well as an Application and Development Division in Guangzhou. Willas-Array counts amongst its major PRC customers, well-known players, including:- · Haier Group, the largest white goods manufacturer in PRC; · TCL Group, the leading producer of colour TV and telephones in PRC; · Legend Group, the Number One PC manufacturer in PRC; · Wuxi Little Swan, one of top producers of washing machines in PRC; · GD Nintaus Tech, a major producer for DVD and VCD players in PRC; and · Zhongxing Telecom, a major producer of telecom equipment in PRC. Outlining its plans for the future, Willas-Array has drawn the following key growth strategies to enhance their competitive advantage:- - Continual upgrading of the Group’s technical and applications capabilities such as the establishment of the applications and development division in Guangzhou in March 2001 to provide customers with value-added product solutions; - Expand the application and development capabilities through possible acquisition of reputable design houses; - Acquire other distributors which offer synergistic benefits and complement the existing business; - Develop eBusiness capability to provide value-added services to its customers, enable tight co-ordination with our suppliers and explore new business opportunities over the Internet; - Increase market penetration into the PRC; and - Expand complementary product lines and services. |
| (Post 6 of 1035) 06/23/2001.07:25:20 |
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Typical components distributor... low margin, high turnover, volatile earnings, etc etc.
* Margin - only 5% on average PBT/Sales (see slide 12 of the presentation) * High turnover - $268 mil in the last FY. * Volatile earnings - Slide 12 shows a "cave in" profit in 1999 Reminds me of similar past issues like Enzer, Unidux & even ECS. * Enzer mkt PER (from SI Sector Analysis) is a whopping 24.2 times. * Unidux mkt PER is only abt 8 times... * FYI... Willas PE is 5 times based on IPO issue price. Conclusion, just on 1st look using PER, can explore further into this IPO. Will download the prospectus for further study. Anyone has any idea if the placement tranche is all taken up? |
| (Post 7 of 1035) 06/23/2001.08:47:13 |
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Just found something strange! Look at Willas Array's shareholders and look at SMT's shareholders.... what do you see? |
| (Post 8 of 1035) 06/24/2001.11:38:34 |
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Hi all,
This one has all the traits of a hot IPO i.e. > 90% are available thru placement and was heavily over subscribe. I personally apply for 20 lot placement thru my broker but was only allocated 3 lot or 15% allocation. |
| (Post 9 of 1035) 06/25/2001.01:11:46 |
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Zico, me too observe that the shareholders of Willas-Array and
SMT are very similar groups of ppl. Will the share price be similar too......... 2268, me apply for 25 lots placement share and only given 2 lots, even more miserable than u......... |
| (Post 10 of 1035) 06/25/2001.08:59:33 |
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heard that it is quite good. It is in a ok buisness but the valuation is tempting....
A lot of interets especially when the sentiment is hot. Subscribe! |
| (Post 11 of 1035) 06/25/2001.10:29:09 |
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Yes Zico, saw the similarity of the SMT & WA shareholdings.... Also confirm with Sagi that the placement tranche (despite that huge amt) is well over-subscribed.
Looks like what happened to SMT will probably happen to WA as well. I think that aside, we shld all start to focus on their fundametals to see if WA is investable once they go start trading. |
| (Post 12 of 1035) 06/25/2001.16:45:00 |
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Downloaded the prospectus but could not find anything outstanding abt this WA... quite a yawn as this component distribution business is not easy to appreciate.
Looked at their strengths but all sounded so common, nothing really striking to me. |
| (Post 13 of 1035) 06/25/2001.17:57:32 |
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The SMT connection might be doing this company a lot of good. Just confirmed - their placement is a few times oversubscribed!
My impression of foreign companies trying to list in Spore is that they always have difficulty in listing not because of lacking fundamentals (in fact, they are often great companies to invest), but they always get into problem during the placement tranche, ie. no takers! For eg. UFood, PFood etc etc were all so jittery during their book-building stage because no one is familiar with them at all despite them being in the FMCG bizness. Another barrier to foreign companies is their language... they cannot capture the audience when they speak with a different accent. As a result, the placement lots were not hot. FYI, UFood almost could not list becoz of that! Back to Willis, their huge placement block of 50m was snatched by the mkt and I suspect that has a lot to do with the same connection SMT had that brought SMT to their high-flying debut... remember SMT started a string of fine runs for IPO debutants. Fundamentally, I am still looking.... nothing exciting except that they are close to the vast China markets where a lot of the tech productions are, plus more are shifting their plants to greater China. Hence, they are closer to the customers. Since I have no chance of laying my fingers on this stock, I will stand by the side to wait for them to start trading before looking closely again. Hmmm.... or maybe apply thro the ATM? |
| (Post 14 of 1035) 06/26/2001.10:40:26 |
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This IPO looks like it has the making of a super-bull.... the SMT connection, strong placement interest, low public tranche, proximity to HK/China etc...
Another thing that is worth noting is that none of the industry sector contribute to more than 25% of their t/o. For eg... telecom is 18%, audio/video is 21%, dealer & others (whatever that means!) is 22% etc etc.... Compared to some recent IPOs where almost all the sales come from a single source (eg. Innovalues & HP), this Willas is probably hedging themselves very well in the event of a sector downturn. One of the opportunities for PRC compenents distributors is that of the increasing shift of Contract mfrs prdn to China... and there is also a global trend of increased outsourcing of components. Not too bad, at least worth a second look at WA. |
| (Post 15 of 1035) 06/26/2001.22:08:26 |
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hi zico, aceman and mossie,
wat's the difference between the following?? a. commence trading when "issued" basis and b. commence trading when "ready" basis.... |
| (Post 16 of 1035) 06/26/2001.22:51:45 |
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Hi Contro,
Some discussions on this can be found at this thread. Hope this is helpful. |
| (Post 17 of 1035) 06/27/2001.07:47:16 |
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Just realised this one PE is less than 5 only.
http://lycosasia.shareinvestor.com/ir/sg/Willas-Array/prospectus_summary.htm Never mind the placement tranche... they got public tranche of 3 million shares as well. |
| (Post 18 of 1035) 06/27/2001.10:07:49 |
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GK Goh recommended a stag...
Key notes.... - To ride on the current favorable IPO sentiment and China play theme About 19% of its sales are direct to the PRC whilst 77% are to its Hong Kong semiconductor customers who shipped the components to their manufacturing bases in China. WAE also has a relatively wider product range of more than 1,000 items and larger active customer base of above 2,000 from well diversified industries. At 5.1x FY3/01 P/E, the IPO is priced rather attractively than the last two listing peers -- Unidux was offered at 6.2x FY12/00 and Enzer at 5.6x FY3/01. At a low absolute entry price of 28cts and given the strong interest in China-related plays, we expect a sterling debut for WAE. - China will buck the downtrend in semiconductor industry this year - Willis-Array will be affected by falling average selling prices its top-line growth can at best be described as pedestrian - CAGR of merely 8%. |
| (Post 19 of 1035) 06/27/2001.11:14:18 |
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IPO Closing Alert !
Willas-Array IPO Closing tomorrow! Willas-Array is principally engaged in the distribution & marketing of electronics components in Hong Kong, the PRC and the Asia Pacific region. The turnover and operating results by geographical regions are segmented according to the geographical distribution of our customers which are mainly from Hong Kong and the PRC. Their customers in Hong Kong and the PRC contributed approximately 96 per cent of our total turnover for FY2001. The remaining 4 per cent. of their turnover were from countries such as Singapore, Malaysia and the USA. Invitation for Public offer - 3 million shares Placement tranche - 45.15 million shares Reserved tranche - 5.35 million shares Useful links 1. Prospectus Summary / Download full prospectus here 2. Company profile 3. Company presentation slides |
| (Post 20 of 1035) 06/27/2001.18:26:54 |
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Heard very solid performance at debut
Looking for 50 cents  |
| (Post 21 of 1035) 06/28/2001.09:36:06 |
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IPO Closing Alert !
Willas-Array IPO Closing TODAY at NOON! Willas-Array is principally engaged in the distribution & marketing of electronics components in Hong Kong, the PRC and the Asia Pacific region. The turnover and operating results by geographical regions are segmented according to the geographical distribution of our customers which are mainly from Hong Kong and the PRC. Their customers in Hong Kong and the PRC contributed approximately 96 per cent of our total turnover for FY2001. The remaining 4 per cent. of their turnover were from countries such as Singapore, Malaysia and the USA. Invitation for Public offer - 3 million shares Placement tranche - 45.15 million shares Reserved tranche - 5.35 million shares Useful links 1. Prospectus Summary / Download full prospectus here 2. Company profile 3. Company presentation slides |
| (Post 22 of 1035) 06/28/2001.10:02:53 |
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Yes, hear that this IPO is going to fly like SMT and the rest.
Fundmentals are not bad and its a breeding ground for market players to speculate on. They need another new "toy" to "play". Thank goodness this Willas is an okay company fundamental, if not they will die a horrifying death once the market "players" are done with playing with their shares. So much hoo-haa when AP Oil & Colorland were listed as they have such great debut and massive volume which are many times the offer. Look at the today's price & volume... pathetic! A lover's spurned! |
| (Post 23 of 1035) 06/28/2001.10:05:44 |
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Forgot to add that I have vested interest, just applied yesterday night.
Eh... correction, no vested interest yet. But hope to have vested interest since its all depending on the balloting, isnt it? Applied a lot... until my bank no more money, so hope that the market is ready to digest this issue. |
| (Post 24 of 1035) 06/28/2001.10:40:53 |
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Yup, also applied last minute for it.
Applied after my morning smoke break today. Impulsive move I must say, hope I win! Ironic feelings now: If the subscription for the public tranche is VERY GOOD, means that the debut will be strong but that also mean that I get very little (or no) allotments! End result: LOW (or no)PROFITS. If the subscription is poor, means that there is a BIG ??? on their debut performance (ie. likely to be subdued) and that will also mean that I get a lot of the shares in the balloting. End result: LOW (nor no) PROFITS. Looks like either way, I wont be happy! Just applied for the fun of it, I guess. |
| (Post 25 of 1035) 06/29/2001.00:11:21 |
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The issue will be heavily oversubsribed....the public float is so small...about 3 million shares only....the balance 50 million plus already placed privately. I've got 4 lots through the placement through brokers. Quite confident of at least 40 cents. |
| (Post 26 of 1035) 06/29/2001.00:18:12 |
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Hi Fabia
I'm sure it is definitely gonna be OversubscribeD 'cos of the small public tranche. Only 3m offered to public. Only 3000 lots! For small players like us who apply 10, 50 lots the most we'll get 1 or 2 lots. |
| (Post 27 of 1035) 06/29/2001.01:44:13 |
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May I know where to search for the subscription ratio and the allocation results for IPO on the internet? 
Thanks |
| (Post 28 of 1035) 06/29/2001.02:00:00 |
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you can check the straits times on fri and sat .. should have the result on either day .
how you all get private placement shares ? is it only the underwriter would have (OUB) only ???other broker firm wouldn't have ? |
| (Post 29 of 1035) 06/29/2001.07:15:52 |
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I am also curious what is the subscription ratio. Applied a lot leh!
Sooner or later, you will know the ratios lah, so in the meantime, I am looking at the company closely to see if I will want to sell my allotment on opening day/s or keep it for longer term. The prospect of a China-linked/based components distribution company looks TOO GOOD to sell on 1st day. I am likely to keep it for a while , assuming I am alloted. Looked around here in SI for the infos on WA - found some enlightening stuffs............. - “The distinguishing factor about Willas-Array is our “demand creation” strategy. Our wide spectrum of products and strong in-house technical engineering support allow us to pro-actively undertake design and application to create the most cost efficient solutions for our customers. These “kit” solutions we sell to our customers “create demand” for our components which provide an earnings base for us. About 60% of the Group’s sales are derived from kit solutions,” said Executive Chairman, Mr Lawrence Leung. - the Group enjoyed a record turnover of HK$1.2 billion (S$268.7 million) and profit before tax of HK$63.8 million (S$11.8). This represented a 5.6% and 44.4% increase over the previous year respectively. - Prospects · The PRC could become the world’s second largest market for electronic components by 20101. · The PRC’s ascension to the World Trade Organisation will give a significant boost to inflow of foreign investments in the semiconductor industry . · The increasing trend of relocation of manufacturing operations by foreign MNCs to the PRC to take advantage of the lower cost of operations3. This is evident from the recent move by Flextronics International to close down the bulk of its Singapore operations and shift production to lower-cost sites in PRC. So how, investors? Keeping for the long haul? I think we shld. Let me check my bank balance later for the answer..... pls pls pls, at least gimme 20 or 30 lots! If not, I sian liao! |
| (Post 30 of 1035) 06/29/2001.09:48:02 |
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Tks Freewill
However, I am refering to source from the internet. Do you or evryone have any idea? |
| (Post 31 of 1035) 06/29/2001.11:19:57 |
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Still no word on the subscription details? I also applied for it, didnt have the time to look at my bank balance.
Does any of you notice that they have a team of brokers doing the placements for them? .... DMG & Partners Securities Pte Ltd; OUB Securities Pte Ltd; Lim & Tan Securities Pte Ltd; Keppel Securities Pte Ltd; Lum Chang Securities Pte Ltd; J.M. Sassoon & Co (Pte) Ltd; Millennium Securities Pte Ltd; G.K. Goh Stockbrokers Pte Ltd ... extracted from the SI prospectus summary. Means that when actual day trading starts, these team members will be hot on their keyboard oggling on this counter. Come out you, Willas! |
| (Post 32 of 1035) 06/29/2001.11:32:04 |
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Haha, yes, there have selected a football team to place out the shares. Thats why its quite high demand.
Also noticed DBS & VB are not in the list simply because they are doing it for Fischer Tech , another IPO now. Then, why is Lum Chang Securities placing out for this IPO? Remember Lum Chang, DBS & VB are ONE big family now.... strange, any insiders care to share? |
| (Post 33 of 1035) 06/29/2001.11:59:17 |
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Wah lau, Zico, insiders are all over the place in the forum, you think they will tell you they are insiders?
Any way, I dunno why you all read so much into the placement agents??? Does it help in your investing decn? I guess they have a lot more placement agents because they cannot place fully if they only select one or two. 50 million shares is not a small sum! You compare that with Top Global, only one fifth of the Willas's placement tranche. |
| (Post 34 of 1035) 06/29/2001.12:10:59 |
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Correct, why are you reading so much into the placement agents? That would make us punters if all you need is just a quick buck.
Unless you have tons of this shares, dun bother with the upside so much lah, even if it rocket to space on 1st day, how much can you earn? How many lots do you have? Thats why I cant be bothered with the public tranche at all - little upside for me. |
| (Post 35 of 1035) 06/29/2001.12:20:03 |
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Also, first thing you need to look out for is the RISK profile of the company. Be concerned of their downside down the road. Thats why the risk factors page is listed on the first few pages of all their IPO prospectus.
Of course, dont think its because they want to show you (they would want if they have a choice, hahaha), its probably some rules from SGX or MAS that the RISK must be shown prominently. Anyway, the RISK of WA seems quite normal ones. Attached some here for you. BTW, just download the prospectus from the above link in Shareinvestor. We are dependent on our principals For FY2001, approximately 98 per cent. of our turnover was attributed to our component distribution activities. Our success in this area depends on the continued distribution rights of our existing pool of 24 principals and our ability to secure new distribution rights. Our four major principals for FY2001 were STMicroelectronics, Murata, Toshiba and NJRC. They accounted for approximately 62 per cent. of our total purchases and 63 per cent. of our total sales for FY2001. In the event that our distribution agreements with these principals are terminated, our sales and profitability will be adversely affected. Please refer to Appendix D to this Prospectus for a summary of our distributorships. We are dependent on incentive schemes offered by one of our major principals The incentive schemes offered to us by one of our major principals include annual performance incentives, stock rebates and income from special promotion programmes. Annual performance incentives and stock rebates are offered to us on a calendar year basis and are receivable in the form of USD credit notes in January each year. Special promotion programmes are offered to us as and when the principal wants to encourage us to promote the sale of speci®c products and are receivable in the form of USD credit notes on speci®ed payment dates. We are entitled to receive performance incentives only if our total net billings for the calendar year exceeds a speci®ed minimum amount. The amount of performance incentives is based on a percentage of net billings and the percentage varies according to the level of net billings achieved for the calendar year. The total amount of stock rebates receivable is based on a ®xed percentage of net billings during the calendar year. In general, we are entitled to receive income from special promotion programmes if our net billings for the speci®c product during the promotion period exceeds a speci®ed minimum amount. The amount of income from special promotion programmes is usually calculated as a ®xed dollar rate for each unit of the product sold above the minimum net billing level. Combined, such incentive schemes accounted for approximately 13 per cent., 20 per cent. and 13 per cent. of our pro®t before taxation for FY1998, FY1999 and FY2000. For FY2001, such incentive schemes accounted for approximately 5 per cent. of our pro®t before taxation. The incentive schemes are offered to us at the sole discretion of the principal. In the event that we are unable to continue to secure such incentive schemes from the principal, our pro®tability will be adversely affected. Our pro®tability will also be adversely affected if we are unable to meet the targets set by the principal. We are exposed to the risks of stock obsolescence As a distributor, we are required to maintain a supply of inventory in our warehouse to cater to the needs of our customers. Generally, we maintain a minimum of 1.5 month's supply of inventories and our inventory balance as at 31 March 2001 was HK$142.7 million. As the electronics industry is characterised by rapidly changing technology and short product life cycles, we are expose to the risk of stock obsolescence resulting from unanticipated price erosion or any sudden decline in demand for certain components. It is our practice to make speci®c provision for stock obsolescence for speci®c components as well as a general provision on the balance of our inventory at the end of our ®nancial year to cover unexpected losses which have not been speci®cally identi®ed. Although our sales and marketing team constantly monitors the industry's products and price trends, there can be no assurance that we will always be able to anticipate all changes in the industry correctly. The increase in provisions for FY2000 and FY2001 were mainly due to our new policy to make general provision of 0.5 per cent. on total purchases with effect from 1 April 1999. The new policy was based on anticipated level of stock obsolescence after taking into account historical and future trends. We are dependent on short-term financing Our average debtors and creditors turnover for the last three ®nancial years ended 31 March 2000, the 6 months ended 30 September 2000 and the ®nancial year ended 31 March 2001 were approximately 57 days and 29 days (excluding the effects of trade ®nance facilities drawn down such as trust receipt loans and bills payable), respectively. As such, we are dependent on our short-term borrowings to ®nance our credit sales. As at 31 March 2001, our total short-term borrowings amounted to approximately HK$141.8 million. This comprised trust receipt loans of approximately HK$141.5 million and the current portion of obligations under hire purchase contracts of approximately HK$0.3 million. In the event that the ®nancial institutions concerned cancel these credit facilities, our operations will be adversely affected and that will have an adverse impact on our turnover and pro®tability. We are subject to interest rates ¯uctuations which may increase our costs of borrowings and will adversely affect our pro®tability While we have, in the past, been able to obtain competitive interest rates for our borrowings from our bankers, there can be no assurance that we will be able to continue to secure such competitive interest rates in the future. In the event of a substantial increase in interest rates, our interest expense will increase and our pro®tability will be adversely affected. Please refer to page 34 of this Prospectus under the Section on ``Capitalisation and Indebtedness'' for detailed information on our short-term borrowings. |
| (Post 36 of 1035) 06/29/2001.12:24:50 |
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Grey Market is $0.50 i heard... |
| (Post 37 of 1035) 06/29/2001.12:34:41 |
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Tks Veryhappy for your comments on their risk factors. Yes, I do read these pages when i download the prospectus.
But I felt that all these that were listed in the Risk Factors are all macham taken from template. Just as if they are doing it because they have to - like making filings at statutory board (ie. SGX) like that. Cannot sense any sincerity from the writers on their risks. The best way to know of their risk factors is to hear them talk, yes, talk w/o reading from the prepared statements... abt their competitors, economic & political condition of China etc etc ... |
| (Post 38 of 1035) 06/29/2001.12:43:36 |
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Veryhappy, agree that we cant read too much into the placement agents. But when you see so many names behind this stock, you cant help but feel secured that so many hands are behind in support.
Also agree that the allocation of the public portion is not going to make us much money in absolute terms, but I do welcome kopi money if big money is not available (ie. placment shares). BTW, you talk like as if this share is going to make you tons of money.... u belly confident huh? Anyway read that you have bought into United Fd and People Food when they just got listed and made a "tidy profit" as a result..... so are you buying Willas when they start trading next week? Tell me leh.... |
| (Post 39 of 1035) 06/29/2001.13:35:56 |
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Is the balloting result out?Anybody knows.Thanks. |
| (Post 40 of 1035) 06/29/2001.17:04:17 |
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Just checked POSB hotline for the results. Didn't get any. Must be massively oversubscribed. |
| (Post 41 of 1035) 06/29/2001.18:07:50 |
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Went through the Prospectus, just download here.... wah lau, I almost could believe that of the proceeds, they are spending 1.8 million on "upgrade the marketing team".
Listed in page 70 , they mentioned that they will buy laptops and PDAs and implementing in-house project of a management software. Hello, all these for 1.8 million? A bit too much right? |
| (Post 42 of 1035) 06/29/2001.18:09:58 |
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Results is out. Can check now. If you apply for 10 lots, you'll be alloted 2 lots. |
| (Post 43 of 1035) 06/29/2001.18:16:00 |
| Author : |
Agree with comments here that the RISK FACTORS are important part of the prospectus that investors do need to at least glance through.
Also agree that these risk factors are quite standard risk factors that basically cover the business, not really company specific. Why? Because they need not tell you company specific risk as they are probably only known to themselves , ie. nobody will find out that they do not disclose them. However, industry risks in something which the whole world also know, so they better disclose something. All in all, good to read but not crucial to read (unless you have heavily invested in it). Of course, if you are in for a short punt, you dun even have to read anything. With the OUB/DBS/UOB tussle this IPO debut will probably be subdued a little.... |
| (Post 44 of 1035) 06/29/2001.18:31:23 |
| Author : |
Singapore 29 June 2001 Willas-Array Electronics (Holdings) Limited (Willas-Array), one of the leading Hong Kong-based distributors of electronic components in Hong Kong, the People’s Republic of China (PRC) and the Asia Pacific region, today announced that, based on the 3,099,000 shares available to the public for subscription (comprising 3,000,000 offer shares, plus 99,000 placement shares due to invalid applications), the offer to the public is approximately 63 times subscribed. As at the close of the Application List at 12 noon on 28 June 2001, there were 5,792 valid applications for the 3,000,000 offer shares. In total, these applicants applied for 195,249,000 offer shares, with application monies received amounting to approximately S$54.7 million. In addition to the 3,099,000 shares available to the public for subscription, the placement tranche of 50,401,000 shares, comprising 45,051,000 placement shares and 5,350,000 reserved shares for the management, employees, business associates and other parties who have contributed to the success of the Group, have also been fully taken up. The shares will commence trading on a “when ready” basis on 2 July 2001. “We would like to thank all the investors for their support. This warm reception reflects the recognition given to Willas-Array’s fundamentals and growth potential, especially with our strong foothold in the electronics industry in the PRC,” said Mr Lawrence Leung, Chairman of Willas-Array. The total issue of 53,500,000 shares, which comprises 20.1% of Willas-Array’s enlarged share capital, was launched on 22 June 2001 at 28 cents per share and will raise net proceeds of approximately S$12.3 million for the Group. The net proceeds from this IPO will be primarily used for the Group’s continued growth and development as follows: - Approximately S$3.0 million to upgrade the Group’s application and development capabilities; - Approximately S$2.5 million to implement e-business capabilities; - Approximately S$3.0 million to set up and develop new liaison offices in the PRC; - Approximately S$1.8 million to upgrade the Group’s marketing team; and - Approximately S$2.0 million for working capital purposes. |
| (Post 45 of 1035) 06/29/2001.23:34:47 |
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what is the POSB hotline to call for IPO status? anyone can help? thanks. |
| (Post 46 of 1035) 06/29/2001.23:49:37 |
| Author : |
DBS IPO hotline : 3274767 |
| (Post 47 of 1035) 06/30/2001.00:11:33 |
| Author : |
Pssst!
Someone tol me ah, Wiris Aray got 45c in grey mkt one, you know? Got meh? My broker say one! Wah! Like that those who tikam and tiok, chaik buah lok, ah! |
| (Post 48 of 1035) 06/30/2001.23:10:11 |
| Author : |
heard from my OUB broker that Nr Tommy Goh is interested in this co...
heard the grey market px is above 0.50cts... |
| (Post 49 of 1035) 07/01/2001.13:41:50 |
| Author : |
so |
| (Post 50 of 1035) 07/01/2001.15:06:57 |
| Author : |
Tomorrow this baby is going to chiong to the sky on debut. Why?
Fundamentally sound, good support from brokers, low absolute price, low public tranche etc etc.... siow liao lah. Get your bank book ready, ready for an all out investment for this new kind on the block. Swallowed so much of this shares that I feel the need to declare. WITH VESTED INTEREST (quite a lot of it, ho ho ho!) |
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