Is Jumbo Group's IPO worth a bite?

AFTER having simmered for over a year, the much-anticipated public float of seafood restaurant owner Jumbo Group early this month could bring some spice to the rather dry listing market this year. But just how appetising does its Catalist initial public offering (IPO) look?

On dividend yields alone, this dish might seem a little on the bland side, and its valuation multiple of about 12 times seems roughly fair compared with its Singapore-listed peers in the restaurant industry.

Still, the group's strong operating margins and solid free cash flow over its past three financial years could make it worth a bite - provided it can sustain that performance while carrying out its overseas expansion plans.