Former SGX-listed HomesToLife prices Nasdaq IPO at US$4 a share
FURNITURE retailer HomesToLife has priced some 1.3 million ordinary shares for its initial public offering (IPO) at US$4 a share.
The counter is expected to start trading on the Nasdaq Capital Market on Tuesday (Oct 1) under the ticker symbol “HTLM”, said the company which was formerly listed on the Singapore Exchange (SGX) mainboard since 1993.
On Monday, HomesToLife also said in its latest IPO filing it has granted the underwriter a 45-day option to purchase up to an additional 187,500 ordinary shares at the IPO price, excluding underwriting discounts and commissions.
The company expects gross proceeds of US$5 million from the flotation. It plans to use some US$2.3 million of the proceeds to open new stores in Singapore, Taiwan, Korea, Indonesia and Malaysia.
Another US$700,000 will be used for sales and marketing, while the remaining will be used for IT purposes, said the company.
HomesToLife has a wholly owned subsidiary in Singapore, which offers furniture solutions at six retail store locations.
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Products it sells include sofas from luxury brands Domicil and Fabbrica, as well as other upholstered furniture and case goods such as coffee tables, dining sets and beddings.
HomesToLife Singapore was incorporated in 1989 by the founders, brothers Phua Yong Tat and Phua Yong Pin.
In 2014, HomesToLife Singapore shifted to the furniture retail business as the retail arm of HTL International, a Singapore incorporated holding company.
HTL International subsequently delisted from the SGX after being bought over by Chinese furniture player Yihua Lifestyle Technology in 2016. The founders stayed on as management.
HomesToLife recorded US$241,859 in net profit in fiscal year 2023, down from the US$318,913 in the preceding FY. Its FY2023 revenue was US$5.2 million, down 17.3 per cent.
The decline was led by a fall in demand for leather and fabric upholstered home furniture products, said the company.
Despite a recovery in market conditions post-Covid, the company noted that the general slowdown in economic conditions globally have inevitably negatively impacted the home furniture market in 2023.
The company had US$3.8 million in current assets as at Dec 31 and US$3.3 million in liabilities.
Citing a CSIL report, HomesToLife noted that the global consumption of upholstered furniture is projected to rise by 1.7 per cent this year – buoyed by a “substantial consumption increase” in Asia.
“We believe that the upholstered furniture industry… is poised for steady growth, driven by favourable economic conditions, evolving consumer preferences and technological advancements in retailing,” said the company.
“We will continue to leverage the opportunities available to achieve sustained revenue growth and enhance shareholder value,” it added.
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