Noodle maker Leong Guan Holdings to offer 20.65 million shares at S$0.23 each in Catalist listing

[SINGAPORE] Food manufacturing and distribution company Leong Guan Holdings has launched its initial public offering (IPO) of 20.65 million shares at S$0.23 each, in conjunction with its listing on the Catalist board of the Singapore Exchange (SGX).

The company registered its prospectus on Friday (Nov 28), and its shares are expected to start trading on Dec 11. 

The offering includes a placement of 16.3 million new shares and 4.35 million vendor shares, which are available to retail and institutional investors in Singapore.

Following the offering, Leong Guan Holdings’ share capital is expected to stand at 101.22 million shares, valued at an estimated S$4.45 million. As at Nov 28, it has a share capital of around 83.8 million shares valued at S$800,003. 

Zico Capital is serving as the IPO sponsor, issue manager and placement agent. 

Use of proceeds 

The total gross proceeds to be raised from the placement will be around S$4.75 million. Net proceeds to be raised from the issue of new shares will amount to about S$2.15 million, after deducting the estimated expenses of approximately S$1.6 million. 

Leong Guan Holdings plans to allocate S$300,000 for the expansion of its export markets and product range. Another S$700,000 will be set aside to enhance its manufacturing facilities, while S$600,000 will be directed towards acquisitions, joint ventures and strategic alliances to expand its businesses. Some S$549,000 will be set aside for general working capital.

The group intends to distribute a minimum of 80 per cent of FY2025 net profit and a minimum of 35 per cent of FY2026 net profit as dividends to shareholders. 

The business of food 

Leong Guan Holdings has more than 22 years of experience in the food industry and specialises in manufacturing fresh noodle and soya bean-based beancurd products, according to its prospectus. 

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It also sells a wide range of food-related products and supplies food products to around 2,000 customers in local and overseas markets.

Its customers include hotels, restaurants, caterers, food-court stall operators, hawkers and kiosks, as well as schools and hospitals. 

Based on its unaudited financial statements, its profit before tax for the first three months of 2025 ended March fell 49.9 per cent to around S$221,000 from S$441,000 in the year-ago period.

However, its revenue for the period grew 3 per cent on the year to S$9.4 million, from S$9.1 million, which the company attributed to higher demand.

The fall in the bottom line came as the group’s finance costs rose 107.6 per cent to S$62,000 for the three months, from S$30,000 previously. It also recorded around S$40,000 in net impairment losses for the period, but recorded no such losses in the previous corresponding three months.

In terms of future plans, Leong Guan Holdings intends to expand its overseas customer base by growing its exports to distributors and brand owners, and increasing its presence across Asia, Australia, North America, the Middle East and Europe.

It also plans to enhance its food offerings by broadening its product range through a vertical expansion strategy, by offering products tailored to its customers’ preferences and lifestyles.

This includes developing ready-to-eat meals, widening the range of flavours and recipes in its offerings, and developing snacks that may yield higher margins than its existing products.

Its plans also include developing foods catered to customers’ health requirements or the needs of different age groups, as well as partnering nutritionists, chefs or other food professionals to create products, such as reduced-carbohydrate ramen or low glycaemic index foods, that are healthy and appealing to customers.

Leong Guan Holdings’ IPO closes on Dec 9.