Background
MoneyMax Financial Services is engaged in providing pawnbroking services, and the retail and trading of preowned jewellery and watches. As one of Singapore’s largest pawnbroking chains, the group currently operates 27 outlets across Singapore under two brands, MoneyMax and Cash Online.
The group began operations under the MoneyMax brand in 2008 and acquired the Cash Online brand in 2013. Their customers are typically individuals who require short-term funds and are able to pledge valuable personal articles, such as jewellery and branded watches, as collateral.
Two of the group’s outlets specialise in retailing a wide range of pre-owned watches and jewellery. The pre-owned watches include mid- to high-end luxury brands. The group also retails pre-owned precious coins, such as gold coins, commemorative medallions and gold bars.
Business Strategy
• Expand its network of outlets
• Refurbish and improve existing outlets
• Expand the range of pre-owned jewellery and watches
• Increase branding and marketing activities
• Expand through acquisitions, joint ventures and/or strategic alliances
Competitive Strengths
• A well-established market player
• Capable and experienced management team
• Strong emphasis on maintaining a sound and effective system of internal controls and risk management
• Extensive network of outlets which offers convenient access to their services
Key Risks
• Regulatory requirements for operations
• Require significant capital outlay and the group relies on external financing to fund its operations
• Changes in interest rates may affect profitability
• Susceptible to gold price volatility
• Susceptible to foreign exchange rate risks and fluctuations
• Inadequate insurance coverage
• Inaccurate appraisal of pledged collateral
Dividend Policy
There is no fixed dividend policy.
ISSUE STATISTICS
Offer Size: 53.8m new shares
Public Tranche – 2.0m shares
Placement Tranche – 51.8m shares
Offering Price: S$0.30
NTA per share (post IPO): S$0.1555
Historical PE (post IPO): 15.5x (FY12)
Market Cap (post-IPO): S$106.1m
Open: 25 Jul 2013
Close: 31 Jul 2013, 12.00 noon
Trading: 2 Aug 2013, 9.00 a.m. (on “ready” basis)
Lead Manager: UOB
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