Any guess on it's likely opening price & closing price tomoro?

Mencast Holdings, a local manufacturer and supplier of sterngear equipment and provider of sterngear services, launched an IPO of 22.5 million new shares at $0.28 each for a listing on the  Catalist board. 21 million of the shares being offered are placement shares, with the remaining 1.5 million available for public offer. The shares being issued will represent 15.3% of Mencast's enlarged share capital. At $0.28 a share, the offer is priced at a historical PER of about 7.3x. This is based on its earnings per share of $0.00385 on pre-invitation capital for the financial year ended 31 Dec '07.

Sterngear equipment are used on the back-portion of vessels and include components like propellers, propeller shafts and rudders. Mencast's equipment is used in commercial vessel applications. It caters mainly to the local and regional shipyards in the offshore oil and gas and marine industry. The company counts among its clients the subsidiaries of heavyweights such as SembCorp Marine and Keppel Corporation. About $1.8 million of the expected $5.1 million in net proceeds raised will be used to acquire or build new production plants and new machinery and equipment in Malaysia and Indonesia. Another $1 million of those proceeds will go towards expanding its production facility to meet increased demand for its equipment and services.

'We believe that the continued increase in level of activities in the offshore oil and gas and marine industry in the region will drive the demand for our sterngear equipment and services,' said Glenndle Sim, Mencast's chief executive officer. 'We believe that new markets for sterngear equipment and services in countries outside of Singapore, such as Indonesia, Malaysia, Vietnam and China, are growing, due to their proximity to major oil and gas resources. Given our strategic location in Singapore, we are well-positioned to ride on the continued growth in the offshore oil and gas and marine industry,' Mr Sim added.

In FY2007, their sterngear service and manufacturing activities accounted for $10.25 million and $8.62 of the group's $18.87 million in revenue, respectively. The year before, revenue stood at $13.35 million. The group posted a net profit of about $4.8 million for the financial year of 2007, up from $2.2 million in 2006.

The IPO will close at noon on Jun 23. Trading on the Catalist is expected to begin on Jun 25. The sponsor, underwriter and placement agent is CIMB-GK Securities.