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ST Group Food Industries prices IPO at S$0.26 per share
ST Group Food Industries, the Australian-headquartered franchisee for various food brands, has priced its initial public offering (IPO) at S$0.26 per share ahead of a listing on the Catalist board of the Singapore Exchange.
The IPO is expected to raise net proceeds of about S$6.2 million through the placement of 30.1 million placement shares and the issuance of 6.9 million new shares to cornerstone investors, Chikaranomoto Global Holdings Pte Ltd and Hyein Foods Co Ltd. There is no public offer.
Chikaranomoto Global Holdings is owned by Tokyo-listed Chikaranomoto Holdings, which owns the Ippudo brand. Hyein Foods is the South Korean owner of the NeNe Chicken brand of Korean fried chicken quick-service restaurant chains.
The indicative date for the close of the application list is July 1 at 12 pm. Shares will tentatively commence trading on a "ready" basis on July 3, 9 am.
ST Group Food Industries owns exclusive franchise and licence rights to the PappaRich, NeNe Chicken, Hokkaido Baked Cheese Tart, Gong Cha, Ippudo and iDarts brands in various territories across Australia, New Zealand and Malaysia.
Net proceeds from the IPO will be used to expand the group's franchise network, introduce new brands and concepts, expand its existing central kitchen and corporate office in Australia, and to set up a new central kitchen and corporate office in Malaysia.
For the half-year ended June 30, ST Group Food Industries made a net profit of A$1.9 million (S$1.8 million). Revenue was A$25 million, up 36.7 per cent from the same period a year earlier.
United Overseas Bank is the sponsor, issue manager and placement agent for the IPO.