Koufu, Singapore’s most famous food court brand, gets listed with a market capitalisation of about S$350 million, with a P/E ratio of 12.94.
Koufu Group, Singapore’s most well known food court operator on Wednesday made its debut on the Singapore Exchange’s (SGX) mainboard at S$0.65, 2 cents or 3.2 per cent up on its initial public offering price of S$0.63 according to ChannelNewsAsia.
With a market capitalisation of about S$350 million, Koufu Group Limited’s listing will boost SGX’s consumer cluster to a total of 152 listings with combined market capitalisation of more than S$135 billion.
Pang Lim, Koufu’s executive chairman and chief executive officer, said its listing was “a vote of confidence for our group and a recognition of our established track record and growth plans.”
According to ChannelNewsAsia, at the close of Koufu’s public offer at 12 noon on July 16, 3,170 valid applications were received for 107.7 million shares. Application monies received amounted to about S$67.8 million, translating to the public offer being 17 times subscribed.
Koufu was founded by executive chairman and CEO Pang Lim in 2002. His wife and executive director, Ng Hoon Tien, is a co-founder.
Their main business for the IPO is provision of F&B for food courts, coffee shops, as well as other establishments. They are also in charge of the management and operations of Punggol Plaza.
The following was first published on 12th July in an exclusive episode of Strategic Investing: Taking Advantage Of Corporate Actions, by Li Guang Sheng, principal trainer of the strategy.
Their core business comprises:
- F&B retail business (Sales of F&B products)
- Outlet and Mall Management (Fees, Rental, licence fees from wet market operator, management fees of food court)
Here are the Main Highlights of this IPO:
- 97,008,000 Offering Shares (17.5% of the company) at $0.63 per Share
- 6,333,000 Public Offer Shares
- 90,675,000 Placement Offer Share
Company intends to distribute dividends of at least 50% of net profit after tax in 2018 and 2019 (but not guaranteed!)
After legal, professional and underwriting fees, the proceeds of 42.5 million SGD are planned to be used for business expansion (expansion of business through joint ventures, strategic alliances, acquisitions or investment opportunities.) and improving business infrastructure (capital expenditure for our proposed integrated facility; refurbishment and renovation of new and existing F&B Outlets)
Cornerstone Investors includes Maxi-Harvest Group Pte. Ltd, One Hill Investments Pte. Ltd, Qilin Asset Management Pte. Ltd. (21,000,000 shares in total, amounting to 3.8% of the company)
EPS for the company is at 4.83 cents and P/E ratio is at 15.75 times. NAV is at 0.09
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