fortunis -ipo listing tomorrow morning!!

I have just been made aware of this IPO which is listing tomorrow morning called Fortunis Resources Limited (ASX:FOT). This looks like a very interesting buying opportunity to me.

FOT has one of the best boards going around - these guys are big Company Directors. The Chairman is John Rubino who also happens to be the chairman (and a major shareholder) of Monadelphous Group Limited (ASX:MND) which has a market capitalisation of over $2b. The Technical Director is Peter Alexander who used to be the MD of Dominion Mining Limited (ASX:DOM) and which got acquired by Kingsgate Consolidated (ASX:KCN) for $375m in 2011.

Whats really interesting about this float is that the market capitalisation of the Company is only $4.2m! You don’t see Directors with these credentials starting up small cap companies unless there are big plans in the pipeline and these guys have a proven track record of creating huge value for shareholders - just check out the price charts for MND and DOM!

But if you look at little further, it becomes even more interesting. The Company has $2.8m in cash, meaning the Enterprise value of Company is only $1.4m which is cheap against any benchmark, but is ridiculously cheap considering this tier 1 board is running the Company. And even more compelling when you look through the prospectus is that the Directors are paying themselves combined wages of just $60k per annum!! Find me another board on the ASX with director fees as low.

Further, there is no Lead Manager to the IPO which means the board has raised the money through their key contacts and got all their mates set, which means it will be a really tight register.

The Directors are well connected guys who have made shareholders a lot of money over the journey - Looks very likely to me that there are big plans for this Company and it looks like it could be an excellent buying opportunity - even if you were buying them at 30-40c, it's still a cheap entry price to be backing this board given their track record and minimal overheads.