Kimly offering 173.8 million shares at $0.25 each in IPO

Kimly is in line to become the first operator of traditional coffee shops to be listed in Singapore.

The company - reported last month as eyeing a listing - tabled its initial public offering (IPO) yesterday.

It is offering 173.8 million new shares at 25 cents apiece, comprising 170 million placement shares and 3.8 million shares for the public.

The offer closes at noon on March 16, with trading expected to start on the Catalist board on March 20.

Kimly is a household name for its "kopitiams" offering food and beverage.

It has nearly 500 stalls across 64 outlets - 56 coffee shops, five food courts and three industrial canteens.

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The network includes 121 stalls that carry the company brand, selling dim sum, seafood zi char and mixed vegetable rice, among other things.

The rest of the stalls are leased to tenants paying rent and management fees that go to Kimly's outlet management division.

We may be kopi-boys, but we are forward thinking kopi-boys.Kimly executive director Vincent Chia

This division accounted for around 57 per cent of Kimly's total revenue last year.

The business is highly resilient, with strong cash flows and healthy earnings growth, executive director Vincent Chia said yesterday.

Despite its size, Kimly commands only a 5.8 per cent market share, "so we have plenty of room to grow", said Mr Chia.

Kimly's revenue expanded from $148.9 million in 2014 to $172.2 million last year - a compound annual growth rate of 7.6 per cent.

Net profit racked up compound annual growth of 9.9 per cent over the same period to hit $24.2 million last year, implying a price-to-earnings ratio of 12.02 for the stock, while cash flow from operating activities remained steady, from $21.8 million in 2014 to $28.4 million last year.

Kimly is looking to raise about $40.4 million of net proceeds from the IPO.

"We may be kopi-boys, but we are forward thinking kopi-boys," said Mr Chia.