Food manufacturer OTS Holdings to raise funds in Catalist listing

BRAND builder and food manufacturing group OTS Holdings had on Thursday lodged a preliminary prospectus for a Catalist listing on the Singapore Exchange.

Established in 1993, the company's core business is in manufacturing ready-to-eat and ready-to-cook meat products with key markets in Singapore and Malaysia. It currently has manufacturing facilities in Singapore and Indonesia.

Its portfolio of brands include Golden Bridge, Kelly's, Golden Lion and Orchid. It has also targeted the growing halal food market through retail brand El-Dina and food service brand Kizmiq through its subsidiary Ellaziq Singapore, a halal food specialist.

Among OTS's key customers are NTUC group and Sheng Siong Supermarket, which accounted for 10.3 per cent and 6.7 per cent respectively in revenue for H1 FY2021.

The company said in the prospectus that it plans to use proceeds from the IPO (initial public offering) to improve and expand production efficiency and capacities through the acquisition of new machineries and equipment. In addition, proceeds will be used to develop new products, research and development general working capital purposes.

OTS is also eyeing an expansion into the Philippines, where there is an expansion of modern food retail markets such as supermarkets and convenience stores in both urban and rural areas with consumers demanding more convenience and flexibility, said the group.

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For H1 FY2021, it reported a profit of S$2.9 million, up from S$795,411 over the same period the previous year. Revenue for H1 FY2021 rose to S$21.1 million from S$14.6 million the previous year due to the increase in revenue from all business segments.

"With the rising awareness of food security in Singapore, there is an increased awareness and importance placed on shelf-stable products, and we expect our products to benefit from such awareness in Singapore," said the group in its prospectus. It is also looking to tap the increasing demand for plant-based products as sustainable protein alternatives through the research and development of its own shelf-stable, plant-based food products.

Upon successful listing, OTS will be the second listing on the Catalist board this year. Private nursing home operator Econ Healthcare had relisted on the Catalist board in April, ending its first day trading 3.6 per cent higher than its IPO price of S$0.28.

SAC Capital is the sponsor, issue manager, underwriter and placement agent.