Fragrance Group

SGX has granted eligibility to list but.... it has a very very tough condition:

The commissioning of an annual internal controls audit until such time Global Hotel’s Audit Committee (“GH AC”) is satisfied that the internal controls of Global Hotel and its subsidiaries (the “GH Group”), including those put in place to monitor and check against vice-related violations at its hotels, are robust and effective enough to mitigate the GH Group’s internal control eaknesses. Prior to the decommissioning of this annual audit, the Board of Directors of Global Hotel (the “GH Board”) is required to report to the SGX-ST on how the key internal control weaknesses have been rectified, and the basis for the decision to decommission the annual internal controls audit;

It has had a fantastic run-up leading to the spin-off of its hotel division. The stock is overpriced now. Not surprised to see it come off 2.5 cents this morning and trading at 46 cents. I read Maybank Kim Eng estimated the book value of the consolidated entity post the spin-off, assuming Fragrance Group retains 55% of GPH, is $0.29 per share.

Taking into account development profits, in particular its 60% stake in Parc Rosewood, last month’s best-selling project, Kim Eng's estimate of Fragrance’s RNAV post spin-off is $0.41 per share. Current stock price implies a 12% premium over its RNAV.

Which is absurd, as its peers like Roxy-Pacific are trading at a discount.

Fragrance has been on a freefall from 51 cents pre-Global Premium Hotels IPO, and has touched 41 cents. Not surprising as the stock was chased up pre-GPH's IPO on belief tht GPH would do extremely well upon listing. Fragrance being an extremely over-valued stock has met its fate. 

Fragrance has a good habit -- it regularly issues bonus shares. Now, one more time!
1 for 1 bonus.

>> The Company is considering the Bonus Issue to expand the issued share capital base by capitalising the accumulated profits of the Company. The proposed Bonus Issue is undertaken to increase (i) the liquidity and affordability of the Shares in the market, and (ii) the issued share capital base of the Company to reflect the growth and expansion of the Group’s business.