IPO Alert:

From http://growyourwealth.blogspot.com/2007/03/ipo-alert-sihuan-pharmaceutical.html

IPO Alert: Sihuan Pharmaceutical Holdings Group Ltd.

As advertised in the Straits Times Money Section, 15 March 2007.

Company: Sihuan Pharmaceutical Holdings Group Ltd.

Sepciality Product: Cardiocerebral Vascular Medicine

Company Background: Based in Haikou, Hainan Province, Sihuan is a leading pharmaceutical company in the field of cardiocerebral vascular drugs. The core product, Kelinao, is the best-selling peripheral vasodilation drug in the PRC (based on a selected sample of 257 major hospitals in 16 cities in the PRC).

Strengths:

1. Wide range of cardiocerebral vascular drugs as well as non-cardiocerebral vascular drugs

2. Strong focus on R&D with more than 50 pharmaceutical products at various stages of development

3. Experienced management team consisting of medical experts holding master of medicine in neurology/general surgery and professional managers

4. Extensive distribution netwrk covering approximately 2,800 hospitals/medical institutions in the PRC (throughout 30 provinces, autonomous regions and municipalities in the PRC).

No. of shares for public offer: 5,000,000

Cost per share: $0.43

Underwriter: Daiwa Securities SMBC Singapore Limited

Deadline: 12.00 noon, 21 March 2007

Prospectus link

Comments: It is definitely rare to see a SGX listing for a pharmaceutical company. Pharmaceutics may be a very good industry to be invested in for the long run, but of course, the correct company must be chosen. In this case, I do not recommend bidding for this IPO.

Sihuan (no company website?! probably in Chinese though) is a company which deals only in China. Is that extensive enough? For me, a company has to at least have some sort of overseas dealings before I get interested in the stock.

There is only one underwriter for this IPO, and regrettably, is not as recognized as I would expect an underwriter to be. It probably does not show much promise to attract more well-known investment banks.

This IPO may be able to earn you some profits if we were still in the bull market of last month, but with the uncertainty surrounding the local stock market recently, I advice readers to stay clear from this IPO.

Posted by Your Wealth Coach at 7:52 AM