| If all goes well, eight months after it announced its plan for a primary dual-listing, Catalist-listed LHN Limited will see its shares traded on the mainboard of the Hong Kong Stock Exchange in a matter of weeks. LHN, in a filing to the Singapore Exchange last Friday, said it "expects the Proposed Listing may take place on or about 29 December 2017."
As part of the listing, LHN will issue new shares and raise an as-yet undisclosed sum of money. About 77% of the proceeds will go to acquiring properties for its logistics services management business and for its "space optimisation" business. The use of proceeds is spelt out in LHN's draft prospectus lodged on the HK Stock Exchange website. What's not explicitly expressed is the management's hope for higher liquidity and valuation for its stock compared to the Singapore market's response. LHN closed at 16.7 cents last week, compared to its net asset value of 19.59 cents. Its 30-day average trading volume is 230,223 shares. |
On the road to the dual listing, LHN recognised S$3 million as expenses in its FY2017 (ended Sept 2017) financial statement. There's another S$2.4 million to be paid upon successful listing. 
LHN executive chairman Kelvin Lim and deputy MD Jess Lim speak with investors after its FY17 results briefing last week. Photo by Leong Chan TeikIts FY2017 profit was dented not only by the listing expenses but also by a S$1.9 million fair value loss in its industrial investment properties in Singapore and a commercial property in Indonesia.
This was partially offset by a S$3.8 million gain on acquisition of Four Star Industries.
|
Stock price |
16.7 c |
|
52-week range |
16.1 – 23.5 c |
|
PE |
26 |
|
Market cap |
S$60 m |
|
Shares outstanding |
362 m |
|
Dividend |
1.2% |
|
Year-to-date return |
-17% |
|
Source: Bloomberg |
|
Not only in FY2017 but also in FY2016, LHN's results reflected swings in the value of its investment properties.
In FY2016, it reported a total of S$9.1 million fair value gain.
For FY2017, LHN reported net profit of S$2.3 million attributable to shareholders.
It proposed a 0.2 cent a share in dividend, down from the 0.6 cent a share for the full FY2016.
|
LHN gave the following business outlook in its FY17 results announcement:
|
