Industrial property developer Soon Hock Enterprise to offer 21.6 million shares at S$0.58 apiece in mainboard listing
Post-IPO, Soon Hock will have a share capital of 310.6 million shares, taking its market cap to an estimated S$180.1 million
[SINGAPORE] Industrial property developer Soon Hock Enterprise has launched its initial public offering (IPO) of 21.6 million shares at S$0.58 each, in conjunction with its listing on the mainboard of the Singapore Exchange (SGX).
The company registered its prospectus on Wednesday (Oct 8), and its shares are expected to start trading on Oct 16.
The offering comprises an international placement tranche of 18.8 million shares and a public offering of 2.8 million shares in Singapore. Of the total, 16.6 million shares are offered by executive chairman Tan Yeow Khoon, who founded Cogent Holdings – a logistics company previously listed on the SGX.
Additionally, cornerstone investors have entered into separate agreements with the company to subscribe for 61.4 million new shares, valued at about S$35.6 million.
Cornerstone investors – typically large institutions that subscribe before an IPO opens to the public – include Amova Asset Management Asia, ICHAM Master Fund VCC, Maybank Securities and UOB Kay Hian.
Together with the cornerstone subscriptions, the total deal size amounts to about S$48.1 million.
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Following the offering, Soon Hock will have a share capital of 310.6 million shares, giving the company an estimated market capitalisation of S$180.1 million.
The company expects to raise net proceeds of about S$34.6 million from the IPO offering and issuance of cornerstone shares, which will go into acquiring new land sites and buildings for development and redevelopment, as well as partly financing existing projects in its pipeline.
Portfolio
Soon Hock and its subsidiaries have launched more than 1,200 units of strata-titled industrial properties and sold about 900 strata-titled units in industrial and commercial zones in Singapore.
Its development projects, which include Polaris@Woodlands, Platinum@Pioneer, and Bartley Biz Centre, have a combined gross development value (GDV) of over S$1 billion.
The company also owns two investment properties in Kaki Bukit and Jalan Papan, generating recurring income. The Jalan Papan property features a factory component and a workers’ dormitory accommodating up to 300 residents.
The dormitory is fully leased to Range Construction; the factory segment has an occupancy rate of 37 per cent, having attained its temporary occupation permit (TOP) in January 2025.
Soon Hock’s revenue is dependent on the timing of the TOPs for its development properties and overall market conditions, among other factors. In FY2024, the company recorded S$7.9 million in revenue and nearly S$3.3 million in profit. In the first quarter of 2025, revenue was S$651,000 with a loss of S$578,000.
Post-listing, Soon Hock plans to distribute dividends of at least a quarter of its net profit from the listing date to Dec 31, 2025, and for FY2026.
Executive director and chief executive officer Tan Min Loon said that the group is “well-positioned to capitalise on Singapore’s strength as a leading economic hub in the region, which has resulted in structural growth and rising demand for modern, high-specification industrial properties”.
Amid recent global trade shifts brought on by new US tariffs, he noted that the company has received more enquiries from regional exporters seeking industrial space in Singapore.
He believes demand for factories, warehouses and worker dormitories will remain firm, supported by major infrastructure projects such as the Tuas Mega Port and Singapore’s strategic position as a logistics hub.
Project pipeline
Tan Min Loon also highlighted upcoming projects Stellar@Tampines and Skye@Tuas, both of which are expected to contribute to the company’s top-line growth.
Stellar@Tampines is expected to attain partial TOP in the fourth quarter of 2025 and full TOP in Q1 2026. As at Sep 15, it had pre-sold 168 units and issued options to purchase for another 43 out of 311 units.
As at Sep 15, Skye@Tuas had received an expression of interest for an entire floor; it is slated to launch in 2026 and attain TOP in Q1 2027.
Soon Hock plans to actively pursue tenders under the industrial government land sales programme and may opportunistically expand into residential development.
Its portfolio also includes freehold industrial properties at 20 Shaw Road and 56, 58, 60 and 62 Senang Crescent, which are in the planning stage.
The group intends to redevelop 20 Shaw Road, with completion targeted for 2028. The property will have an estimated gross floor area (GFA) of 12,759 square metres (sq m) and a projected GDV of S$235.4 million.
Tan Min Loon said the company is seeking approval to convert part of the Shaw Road asset into a dormitory, calling it a “natural and organic diversification”, given that it already operates 300 beds in Jalan Papan.
Currently, the company is fetching about S$450 per bed per month at its Jalan Papan dormitory. If the conversion is approved, rental rates at Shaw Road are expected to reach around S$600 per bed per month.
Meanwhile, the Senang Crescent properties have an estimated GDV of S$60.3 million and proposed GFA of 3,893 sq m.
Soon Hock also aims to diversify with income-generating assets, acquire more industrial properties for long-term lease, and enhance underutilised or ageing assets through asset enhancement initiatives.
The group is also open to strategic partnerships and joint ventures, which enable it to undertake larger-scale projects while managing financial and operational risks.
The IPO closes at noon on Oct 14.
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