TriTech IPO

TriTech Group debutted weakly on SGX as weak underlying market conditions likely to offset stable fundamentals of Singapore's construction industry. Singapore-based ground, structural engineering services provider offered 36 m new, vendor shares in IPO at $0.20 each (4.58X historical P/E). The offering was 1.15x subscribed.

"With a historical P/E of 4.6, it's very difficult for its forward P/E to be higher because at this point in time, we have a lot of counters trading at forward P/Es of about 3x, including construction stocks," says local house analyst; "in this market, if their forward earnings are the same or more or less the same as their historical results, reception to the IPO wouldn't be that strong."

TriTech, which has worked on the Marina Bay casino-resort, CityDev's The Sail@Marina Bay waterfront condo, plans to use $4.4 m net proceeds (after setting aside portion for vendors) to commercialize water treatment technologies, buy machinery, expand overseas.