YKGI Limited, the owner of local famous duck rice brand Yew Kee Duck Rice, is the first initial public offering (IPO) on the Singapore Exchange (SGX) this year. It has on Jan 26 registered its offer document with SGX for its IPO on the Catalist board.
YKGI is offering 82,750,000 ordinary shares at 20 cents per share, comprising about 53.75 million new shares and 29 million shares sold by current shareholder Seah & Family, fully by way of placement. The placement shares will represent approximately 19.5% of YKGI’s enlarged issued share capital of 425 million shares post-IPO.
At the same time but separate from the placement, an individual Teo Kee Bock, along with Huan Yong Group have each entered into a cornerstone subscription agreement with YKGI to subscribe for such number of new ordinary shares in the company to be determined by dividing their commitments of $2.0 million and $1.25 million respectively by the placement price. Accordingly, Teo and Huan Yong Group will be issued an aggregate of 16.25 million cornerstone shares.
Teo is the founder of the Super Group and Apricot Capital. Huan Yong Group is an investment holding vehicle of the Te family, whose patriarch, Mr. Ronald Te Kok Chiew, was a co-founder of Super Group together with Teo.
Based on the Placement Price of 20 cents per share and the group’s share capital immediately post-IPO, the market capitalisation of YKGI is expected to be approximately $85.0 million. The group expects to raise gross proceeds of about $16.55 million from the placement, to be used mainly for business expansion, including opening new outlets in Singapore and overseas, expanding into more market segments, strengthening supply chain capabilities, expanding franchising and sub-franchising operations and undertaking strategic acquisitions and joint venture partnerships.
The placement will close at 12.00pm on Wednesday (Feb 1). Listing and trading of YKGI’s shares are expected to commence at 9.00am on Monday (Feb 6). RHT Capital is the issue manager and full sponsor for the IPO. Evolve Capital Advisory and KGI Securities are the joint placement agents.
See also: FWD Group has refiled to list with the HKEx
Photo: Albert Chua/ The Edge Singapore