Thursday, 23 March 2017

UPP Holdings Limited - Recent announcements and what to make of them


Listed on main board of Singapore Exchange on 15 October 1980
Business activities (obtained from UPP's website)

Singapore - Investment holding and rental and management of properties.

Malaysia - Produces industrial grade papers such as Testliner, corrugating Medium, Chip Board and more from 100% recycled waste paper

Myanmar - Built and operates a 50 megawatt gas-fired electricity generating plant in Ywama, Myanmar

From the Key Metrics, UPP Holdings Limited is a company that has practically no debt, and runs a stable business. Nothing much to complain about unless you are looking for explosive growth.

What I actually intend to focus on are their recent announcements.

Announcement 1
Placement of 40,000,000 shares at $0.25 to 4 individuals

I took the liberty and googled for more information regarding them. I have to declare first that I am unsure if the below is the correct person or if they just happen to share the exact same name. I chose the person that most likely fits the bill. 

Mohamed Nazir Bin Abdul Razak - 16,000,000

Source: http://www.bloomberg.com/research/stocks/people/person.asp?personId=8367777&privcapId=877377

John Vlasto - 14,000,000
Unfortunately I could not find much information online to draw a conclusion as to the identity of Mr John Vlasto.

Hsieh Fu Hua - 8,000,000
Source: http://www.gic.com.sg/about-gic/corporate-governance?id=227

Chan Chia Lin - 2,000,000
Source: https://www.moh.gov.sg/eldershieldreview
Total - 40,000,000
The subscribers were introduced to the company by business associates of the Group as strategic investors. Each subscriber's subscription of the Subscription Shares is for investment purposes only
Each Subscriber has undertaken to the Company that he/she shall not, for a period of 6 months commencing from and including the date of issue and allotment of the Subscription Shares to him/her, directly r indirectly offer, sell, contract to sell, transfer, pledge grant any option to purchase, grant any security over, encumber or otherwise dispose of, any of the Subscription Shares.
I have to admit that I'm pretty impressed with the above names. I'm unsure if the sources are updated to reflect current day situation but nevertheless, their credentials (past or present) speak for themselves and if UPP Holdings Limited managed to entice the 4 investors to invest in them, it pretty much shows promise in their future earnings.

Announcement 2
Warrants - I brushed up my knowledge of warrants via investopedia but feel free to correct me if I made any mistakes.

Exercise price: $0.37
Last transacted price: $0.19
Warrants listed on 16 February 2017
Exercise date: 6 months from listed date
Warrants will be in the money should the share price rise above $0.37

Warrants Premium:  [(warrant price + Exercise price - current share price) / current share price]* 100
[($0.19 + $0.37 - $0.28)]/$0.28 = no premium?
Goes to show that early investors with warrants are already sitting on large gains.

Setting a high exercise price is a sign that the company is confident about the stock performance and it bodes well for long term investors.

Disclaimer: I'm currently not vested in UPP Holdings Limited. The above information are based on my limited understanding and does not constitute a buy or sell call. Always do your own due diligence before taking any actions.

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