Industries
Sheng Siong
Challenge
Sheng Siong Group Ltd. (“Sheng Siong”), one of the largest supermarket chains in Singapore, was listed on SGX in August 2011. At the point of IPO, Sheng Siong’s profile was not as visible as the incumbents NTUC Fairprice and Dairy Farm. Some investors also had concerns over how Sheng Siong will allocate its free cash flow generated.
Strategy
During the IPO process, Financial PR positioned Sheng Siong as one of the major supermarket operators in Singapore using The Three Kings concept, highlighting that Sheng Siong is the third largest domestic player after NTUC Fairprice and Dairy Farm.
We also branded Sheng Siong as a defensive and dividend-yield play during IPO. Financial PR recommended for an increase in dividend payout ratio to 90%, which assisted to lift investor interest and ensure the success of the IPO in a challenging market in 2011.
Post IPO, we continued to assist Sheng Siong in building up its profile and managing the expectations of the investment community.
Outcome
Following the IPO, Sheng Siong has attracted strong interest from the investing community. The company is currently covered by six research houses, including foreign brokerages such as J.P. Morgan and Daiwa Securities.
IRVA
Over a one year period (1 July 2013 – 30 June 2014), we achieved a gross IRVA* amounting to S$113,000.
| Components of IRVA | Quantitative factors | Attributed value |
| Media value-add | 22 research reports including two initiation reports | S$80,000 |
| Research value-add | 11 fund and analyst meetings, conferences and brokerage roadshows | S$33,000 |
