Thursday, May 2, 2013

Asia Pay Television Trust IPO

Full prospectus linked below

http://masnet.mas.gov.sg/opera/sdrprosp.nsf/e25d3309aa11eacd48256f64000f86d1/BD2194503DB5A68148257B5F002426A1/%24File/2.3.1%20-%20Asian%20Pay%20Television%20Trust%20Preliminary%20Prospectus.pdf

Price: $1.00
Expected Yield:  7.29% (FY13) 8.25% (FY14)
Date and time Event
16 May 2013 : Price Determination Date (subject to change).
17 May 2013, 9 a.m. : Opening date and time for the Public Offer.
27 May 2013, 12 noon : Closing date and time for the Public Offer.
29 May 2013, 2.00 p.m. : Commence trading on a “ready” basis.


Overview

Asian Pay Television is a newly constituted Registered Business Trust formed to acquire its initial
asset, the TBC Group. The TBC Group is Taiwan’s third-largest cable TV operator, with more than
751,000 Basic Cable TV RGUs as at 31 December 2012. The TBC Group is a leading, integrated
cable operator in Taiwan that generates stable cash flows and has an attractive growth profile. The
TBC Group operates exclusively in Taiwan, where it offers Basic Cable TV, Premium Digital Cable
TV and Broadband services to households and businesses in five closely clustered and heavily
populated franchise areas in northern and central Taiwan.

My View:

The fundamentals are not good as the business has been making losses over the last 3 years due to the high cost of debt.

Pay TV is a dying business as consumers are getting smarter by watching whatever videos they want from online directly. Even my mom who is 63 this year knows how to watch free streaming of her favorite Hong Kong dramas online.

Croesus Retail Trust seems like a much better deal with its 8% yield. I mentioned it a few days ago at
http://stockbrokerplayspoker.blogspot.sg/2013/04/croesus-retail-trust.html

I do no see much upside on the 1st trading day. To make this really attractive, investors would really like to be paid 8% to 10% yield.

Are we really that hungry for yield?

Well I think so

Best regards,
Felix Leong
aka pipi486










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