Atiqur Rahman-28029

Mohammad Nayem Uddin29075

Masrur Ahmad Shahedi28082

Cash
Technolog
y Limited:
A Chinese
IPO in
Singapore

Case Overview
Segment

% of
allocation

Increased WC & general corporate

requirement

20%

Additional personnel, training, development

software, development hardware, testing
equipment

45%

Additional sales staff, marketing activities

35%

Total

100%

Economy Analysis
Cash Technology Limited (Cash Tech) is an undivided part of PRCs (Peoples
Republic of China) economy. Any change in fundamental variable of PRCs
economy will affect the Cash Technology Limited. So study of PRCs economy is
relevant in here. Chinese Communist Party (CCP), the existing ruling party of PRC
& is considered the ruler of worlds one forth people, took economy oriented
program as well as allowed processes of market liberation. As a result PRC has
become recognized as Socialist Market Economy. The Chinese economy, one
of the largest robust economies of the world, expanded since 1978 at a frenetic
pace. At present (2004), Gross Domestic Product (GDP) size is 4 times as what it
was in end of the seventy decade where as it is USD 1230 on per capita basis.
PRC has entered in World Trade Organization (WTO) on 2001 & subsequently
welcomed the international community in china. Peoples Republic of China (PRC)
established five nos. of special economic zones. These zones privileged including
tax incentives, greater independence for international trade as well as
encouraged foreign investment. People demanded regarding easy access to their
money outside the banking hour as away from banks location was increased as
PRCs economic development reflected prosperous & cash-based society.

Industry Analysis
Power of Suppliers
Potential of new entrantsinto
industry

Rivalry Amongthe
Competitors
Power of Customers

Threat of
Substitute Product

Company AnalysisSWOT
STRENGTHS
Long

professional track record of the promoters in the

relevant industry
Own capacity of in-house research & design capabilities
that lead to comprehensive range of innovation
Established and loyal buyers portfolio
Diversified sources of supplies that enables CashTech to
gain low cost advantage
Strong quality orientation with strict procedures, standards
and testing guidelines regaining product portfolio
High industry entry barriers in local market
Marginal leverage position of the Firm due
to absence of
external debt financing
Good capacity utilization

Company AnalysisSWOT

WEAKNESSES
Current location advantage would be short-lived
and in near future CashTech would have to pay
the normal tax rate on its profit
Limited financial resources to grow
locations and
customers more aggressively
High competitive pressure to sustain in the market
due to the industry nature
Requires frequent investment in research &
development fields resulting from high degree of
innovation and technology advancement due to
industry nature

Company AnalysisSWOT

OPPORTUNITIES
Increasing local demand for self service banking
machines as domestic banks were attempting to
modernize & professionalize
Diversify market in Singapore may boost the
growth and profitability of the Company
Flow fund from IPO would enable CashTech to
participate aggressively in the rapid growth in the
China market

Company AnalysisSWOT

THREATS
High degree of competition as peer groups are
serving the market with similar type of products
Increasing foreign competition in local market due
to low international entry barriers may impact
CashTechs growth and profitability to some extent
Though currently CashTech has no debt financing
but any undertaking of external debt may have
some effect over its cash flow and leverage
position

Risk Analysis
Interest

Rate Risk
Exchange Rate Risk
Industry Risk
Market & Technology Related Risk
Government Regulations
Potential Changes in the Global or
National Policies
Operational Risk/Business Risk

Statement of Problem

Alternative Course of
Action

Analysis of Each
Alternative

Recommendation

ThanK You