YKGI, the group which operates Yew Kee Duck Rice and bubble tea brand Chicha San Chen in Singapore, is eyeing a Catalist listing.

The initial public offering (IPO) will not have a public offer but will instead comprise only a placement tranche, the group said in a preliminary offer document lodged on Dec 30.

YKGI, which was incorporated in 2022, is owned by a company controlled by executive chairman Seah Boon Lock, the founder of Yew Kee Duck Rice (previously known as Yu Kee Duck Rice) which has been around since the 1980s.

The group is looking to raise capital for business expansion – which includes opening new outlets in Singapore and overseas, and bolstering its franchising and sub-franchising operations.

YKGI operates eight F&B brands, namely Yew Kee Duck Rice, Chicha San Chen, XO Minced Meat Noodles, My Kampung Chicken Rice, PastaGo, Victoria Bakery, as well as the My Kampung and Fine Food food courts.

To date, it operates one central kitchen, 44 food outlets, four food courts, and exclusively franchises all 29 Chicha San Chen outlets in Singapore. The group was granted a franchise and licence to operate the bubble tea brand in Singapore for 10 years, starting from Jan 14, 2019.

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YKGI recorded an unaudited net profit of S$2.4 million for the first half of 2022. It posted an audited net profit of S$1 million, S$4.9 million and S$8.9 million for FY2019, FY2020 and FY2021, respectively.

Revenue was S$26.8 million in H1 2022 and S$56.1 million, S$39 million and S$31.6 million in FY2021, FY2020 and FY2019, respectively. YKGI’s cash and bank balances stood at S$14.8 million as at Jun 30, 2022.

The Chicha San Chen franchise contributed 39.8 per cent to the group’s total revenue in the financial year 2021. Nearly half (48.6 per cent) was from its F&B operations business, while 11.5 per cent of revenue was from its food court business.

The group intends to seek more franchise opportunities to enhance its existing portfolio. It also plans to expand and upgrade its central kitchen and warehouse, as well as explore strategic acquisitions and joint venture partnerships.

Its cornerstone investors include Teo Kee Bock, founder of Super Group, and Huan Yong Group – the investment vehicle of Ronald Te and his family. Te was also a co-founder of Super Group – known for its three-in-one beverage products. (*see amendment note).

RHT Capital is the issue manager and full sponsor for the IPO, while Evolve Capital Advisory and KGI Securities are joint placement agents.

*Amendment note: A previous version of this story misspelt Teo Kee Bock’s surname.