KinderWorld delays IPO until 'more favourable time'

Singapore

KINDERWORLD is putting its initial public offering (IPO) plans on hold, the company said on Tuesday.

The Vietnam-based private-school operator said in a statement: "KinderWorld International Group and its advisers are evaluating the current market performance and geo-political climate, and have re-timed its proposed IPO to better tap the Singapore capital markets at a more favourable time."

Meanwhile, it is business as usual, the group said. "We remain confident about the prospects of our business. Our balance sheet remains healthy with sufficient funds to continue to grow in our targeted markets, and we are committed to delivering results and providing investors with long-term, sustainable value."

Singapore's IPO market for large flotations has been soft of late.

Prime US Reit downsized its offering size in June. In May, Eagle Hospitality Trust's subscription rate for its public offer was a mere 0.4 times.

KinderWorld is probably taking a wait-and-see approach until the market can support its desired valuation, stock watchers said.

At management roadshows, KinderWorld tested an IPO price range of 25.9 to 30.1 times its pro forma earnings per share for the financial year ended June 30, 2018.

But the market could only support a price to earnings ratio below that range, one observer said.

For comparison, MindChamps, an operator and franchisor of premium-range pre-school centres in Singapore, went public in 2017 at 37 times its historical earnings. MindChamps now trades at 23.4 times its trailing earnings.

KinderWorld had aimed to raise up to S$71.4 million from a mainboard listing on the Singapore Exchange, to value the company at between S$300.5 million and S$349.3 million.