CFA Society Singapore
SINGAPORE (July 11): F&B operator Koufu Group has launched its initial public offering (IPO) at 63 cents a share to raise gross proceeds of $74.3 million with its proposed listing on the Mainboard of the Singapore Exchange (SGX).
The group is selling some 97 million offering shares -- comprising an international placement of 90.7 million shares and public offer of 6.3 million shares -- and 21 million cornerstone shares.
Cornerstone investors comprise Maxi-Harvest Group, One Hill Investments, and Qilin Asset Management.
Upon completion of the offering, Koufu's total number of issued and outstanding shares will be around 555.2 million shares, with a market capitalisation expected to be $349.8 million immediately upon listing.
In a filing to SGX on Wednesday, Koufu says the gross proceeds from the IPO will be used to fund capital expenditure for a proposed 20,000 sq m integrated facility in Woodlands Avenue 12, the refurbishment and renovation of new and existing F&B Outlets, and the expansion of Koufu’s business through joint ventures, strategic alliances, acquisitions or investment opportunities.
Koufu’s outlet & mall management business segment spans a total of 47 food courts, 14 coffee shops, the Jurong West Hawker Centre and Market, and the Punggol Plaza commercial mall in Singapore. IT also manages a food court at Sands Cotai Central in Macau.
Under its F&B retail segment, Koufu operates 81 self-operated F&B stalls that are located within its food courts and coffee shops or within third party food courts, five F&B kiosks, 11 quick-service restaurants (QSR), and three full-service restaurants in Singapore. It also operates two F&B stalls and a F&B kiosk in Macau.
The group says it intends to use Singapore and Macau as springboards for expansion into overseas markets, which may potentially include China, Malaysia, Indonesia, and Australia.
“As a homegrown company, we are pleased to be able to offer this opportunity to Singaporean investors to participate in our resilient business, supported by an experienced management team with a proven track record,” says Pang Lim, Koufu’s executive chairman and chief executive officer.
“We are also heartened by the support and vote of confidence from our cornerstone investors as we continue to expand and strengthen our presence in Singapore and abroad,” he adds.
The offering will close at 12 noon on Monday, July 16, 2018.
The listing and trading of Koufu’s shares is expected to start on a “ready” basis at 9am on Wednesday, July 18.