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Jumbo Group's IPO nearly eight times subscribed

Friday, November 6, 2015 - 19:41

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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.

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.

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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.

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