Mediland Pharm Limited

Mediland pharm Ltd (Proposed ASX code: MPH) operates retail outlets that service inbound Chinese visitors that come to Australia via organized tours arranged under the Approved Destination Status scheme. Over the years, the company has grown to become a market leader in retailer servicing the Chinese inbound tourism sector across Australiawith the growth of inbound tourist numbers from China and increasing level of expenditure by Chinese tourists. The Company has been profitable in recent years and has no financial leverage. As of now, the Company wishes to enhance its existing retail network through selective store renovations and increasing own-brand sales as a percentage of total sales. Mediland Pharm will also strategically expand its retail network through development or acquisition of stores catering to Chinese consumers outside of organized tour groups.On the financial front, the Company has achieved a three-year compound annual growth (CAGR) in revenue of 4.1% to FY18 while NPAT recorded CAGR growth of 51.2% percent over the three years (FY16-18).

Recently, the company lodged the prospectus with the Australian Securities and Investment Commission (ASIC) for an offer in the range of 312.5 Mnto 325.0 Mn Shares at an issue price of $0.20 per share and will raise a total amount of $12.5 Mn to a maximum of $15.0 Mn. It is expected that the shares will be quoted on ASX around 25 January 2019. The expected offer closure date is 14 January 2019. The funds raised will be used by the Company primarily to finance the continued growth of its business, with a lesser amount allocated to general working capital and IPO transaction costs.


MPH’s Proforma Historical Financial Performance (Source: Company Reports)
 
On the other hand, the Company has a strong and profitable business underpinned by long term strategic partnerships and leveraged to rising income levels in China and the growth in inbound tourism from China to Australia. Post listing, the company want to enhance the prestige and reputation of the Company amongst OTOs (outbound tour operators), ITOs (Inbound tour operators), suppliers and customers. This is however yet to seen in the upcoming period.
 

Relentless Resources Limited

Relentless Resources Ltd (Proposed ASX code: RRZ) operates in the verticals of Heavy Mineral sands exploration and development. The Company intends to list on the ASX and continue the exploration and development of its exciting Heavy Mineral Sands (HMS) projects. For that matter, the company issued the prospectus with the Australian Securities and Investments Commission (ASIC), in relation to an offer of 16,000,000 Shares under full subscription and 20,000,000 shares under oversubscription at an issue price of $0.50 per share to raise a total amount of $8.0 Mn to a maximum of $10.0 Mn. It is expected that the shares will be quoted on ASX around 23 January 2019. The offer closure date was 21 December 2018. The objective of IPO is to meet the planned goals of Relentless over the next 24 months and bring its HMS Projects into production.
 

RRZ’s Historical Financial Performance (Source: Company Reports)
 
Global demand for titanium feedstock is forecast to increase by 2.5% CAGR over the period 2017 to 2025 reaching just under 9 million TiO2 Units by the end of the forecast period. Strong growth of 5.4% CAGR is anticipated for the titanium metal sector over the same period. As the demand for products utilizing HMS products grows globally and is currently experiencing significant output shortfalls. Due to these factors, Relentless considers that it is well positioned to capitalize on this growing demand. However, it is yet to watch the stock as the group aims to use the entire proceeds for growth through IPO funding.

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