SEAFOOD restaurant owner Jumbo Group's S$22.1 million Catalist initial public offering (IPO) was about eight times subscribed overall as retail investors clamoured for a piece.
The company had offered 88.23 million shares at S$0.25 apiece to the public. Though the placement tranche was not completely filled, retail demand more than made up for it.
Retail investors collectively put up S$155.2 million worth of total application monies to chase after just 2 million IPO shares on offer to them, Jumbo said in a press release on Friday.
But out of the 86.23 million shares available in the placement tranche, 86.17 million worth S$21.5 million were validly subscribed for. Chief financial officer Tay Peng Huat told The Business Times that the gap was due to a subscription error made by "a couple of" investors who had been allocated placement shares but also went to an ATM to subscribe for retail tranche shares.
Jumbo said it intends to use the net IPO proceeds of about S$37.5 million to establish new outlets and refurbish existing outlets; acquire new premises, equipment and machinery; and for working capital and general corporate purposes.
The counter is expected to begin trading on the Catalist board on the morning of Nov 9.