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Jumbo Group Ltd. (Jumbo) was among Singapore's leading food and beverage establishments. Founded in 1987, the group consisted of eight brands and operated 16 outlets-14 in Singapore and two in China. On October 28, 2015, Jumbo announced its initial public offering (IPO) of SG$22.06 million, consisting of two million retail shares and 86.23 million placement shares at SG$0.25 each. In this highly competitive market, the company's chief executive officer and chairman was motivated to list Jumbo so it would have a bigger platform and better exposure to grow faster. He hoped a softer IPO market would attract more long-term investors. Jumbo was clearly profitable, but based on its past financial performance, what would be a reasonable valuation for each of its shares? The case covers valuation using the discounted cash flow model, weighted average cost of capital, discounted dividend model, and relative valuation, as well as the computation of underpricing.

Student spreadsheet for product 9B16N068.

On January 21, 2015, a trading halt was placed on the shares of Keppel Corporation (Keppel Corp) and Keppel Land Limited (Keppel Land). On January 23, 2015, Keppel Corp announced an offer to take its subsidiary, Keppel Land, private. At the time of the offer, Keppel Corp already owned 54.6 per cent of Keppel Land. The buyout offer used a two-tier pricing approach with a higher price paid if Keppel Corp acquired a threshold number of shares. Keppel Corp would have the right to receive any distribution that might be declared, paid, or made by Keppel Land on or after the purchase date. The offer was scheduled to close on March 12, 2015. On February 2, 2015, Keppel Land appointed KPMG Corporate Finance Pte. Ltd. as the financial adviser to the independent company directors regarding the offer. Minority shareholders of Keppel Land were interested in evaluating Keppel Corp’s offer and examining its motivations. This would require that they compute the premium and net present value of the company, as well as analyze the revenue and cost synergies of the buyout.

In September 2015, Susie reflected on the performance of her personal investment portfolio over the past seven years. Susie had invested in two exchange traded funds (ETFs): Lyxor ChinaH and Lyxor MSIndia. She was now considering Lyxor USDJIA as a third ETF to diversify her risk. This analysis would involve the concept of portfolio diversification and the application of the capital asset pricing model. In addition, Susie would need to calculate mean returns, standard deviations, covariances, correlations, betas, and required returns in order to fully assess the merits of her decision. Although Susie had been satisfied with her portfolio performance over the past seven years, the high growth in these two emerging markets had fizzled out lately. Should Susie diversify her portfolio or remain invested in China and India only?

In September 2015, Susie reflected on the performance of her personal investment portfolio over the past seven years. Susie had invested in two exchange traded funds (ETFs): Lyxor ChinaH and Lyxor MSIndia. She was now considering Lyxor USDJIA as a third ETF to diversify her risk. This analysis would involve the concept of portfolio diversification and the application of the capital asset pricing model. In addition, Susie would need to calculate mean returns, standard deviations, covariances, correlations, betas, and required returns in order to fully assess the merits of her decision. Although Susie had been satisfied with her portfolio performance over the past seven years, the high growth in these two emerging markets had fizzled out lately. Should Susie diversify her portfolio or remain invested in China and India only?

Instructor spreadsheet for product 8B16N004.

Following a turbulent 2014 for Standard Chartered Bank, the bank's largest shareholder, Temasek Holdings, began showing indications that it was seriously considering offloading at least a portion of its massive shareholdings in Standard Chartered Bank. This case seeks to provide a fair valuation of Standard Chartered Bank's intrinsic value, as well as rationalize the most appropriate way for Standard Chartered Bank to raise funds to satisfy the higher capital requirements under Basel III regulatory rules. Assuming that Standard Chartered Bank decided to hold on to its significant bank investments and to raise funds to satisfy the higher capital requirements, what could be some possible financing alternatives? Would it help to attract more bank deposits, raise debt, or go for a seasoned offering? What would be the impact of these financing alternatives? Finally, what would be a suitable recommendation on how to raise the funds if one took the valuation results into consideration?

Olam International, a publicly listed firm, was a leading agri-business with an integrated supply chain. To sustain growth, the company took on large amounts of debt to fund acquisitions and other capital expenditures. A hedge fund issued a Sell recommendation, highlighting the problems facing the company, including several years of negative free cash flows. The heated exchange between Olam and the hedge fund led to a government investment fund, Temasek Holdings, first backing Olam, and then eventually offering to buy out the minority shareholders. This scenario presents an excellent opportunity to apply the discounted cash flow analysis and relative valuation techniques to evaluate Temasek’s offer.

Jeju Air is a market leader in the South Korean low-cost carrier industry, operating more than 20 domestic and international air routes in Asian countries. In the midst of rising economic activity and the opening of more air routes in North Asia, Jeju Air is planning an initial public offering to seek capital to grow its China business.<br><br>Meanwhile, Singapore Airlines is in discussions to purchase a 20 per cent equity investment in Jeju Air. Is this investment a wise decision for Singapore Airlines? Additionally, what is Singapore Airlines’ future outlook in terms of its existing underperforming subsidiaries?

Jeju Air is a market leader in the South Korean low-cost carrier industry, operating more than 20 domestic and international air routes in Asian countries. In the midst of rising economic activity and the opening of more air routes in North Asia, Jeju Air is planning an initial public offering to seek capital to grow its China business. Meanwhile, Singapore Airlines is in discussions to purchase a 20 per cent equity investment in Jeju Air. Is this investment a wise decision for Singapore Airlines? Additionally, what is Singapore Airlines' future outlook in terms of its existing underperforming subsidiaries?

Following a turbulent 2014 for Standard Chartered Bank, the bank’s largest shareholder, Temasek Holdings, began showing indications that it was seriously considering offloading at least a portion of its massive shareholdings in Standard Chartered Bank. This case seeks to provide a fair valuation of Standard Chartered Bank’s intrinsic value, as well as rationalize the most appropriate way for Standard Chartered Bank to raise funds to satisfy the higher capital requirements under Basel III regulatory rules. Assuming that Standard Chartered Bank decided to hold on to its significant bank investments and to raise funds to satisfy the higher capital requirements, what could be some possible financing alternatives? Would it help to attract more bank deposits, raise debt, or go for a seasoned offering? What would be the impact of these financing alternatives? Finally, what would be a suitable recommendation on how to raise the funds if one took the valuation results into consideration?

Olam International, a publicly listed firm, was a leading agri-business with an integrated supply chain. To sustain growth, the company took on large amounts of debt to fund acquisitions and other capital expenditures. A hedge fund issued a Sell recommendation, highlighting the problems facing the company, including several years of negative free cash flows. The heated exchange between Olam and the hedge fund led to a government investment fund, Temasek Holdings, first backing Olam, and then eventually offering to buy out the minority shareholders. This scenario presents an excellent opportunity to apply the discounted cash flow analysis and relative valuation techniques to evaluate Temasek's offer.