Foodcourt operator Koufu prices IPO at 63 cents a share
Foodcourt operator Koufu has priced its initial public offering (IPO) at 63 cents a share, ahead of a listing on the Singapore Exchange mainboard.
The IPO will raise net proceeds of $70.5 million through the sale of 51.2 million new shares and 45.8 million shares owned by Koufu founder Pang Lim and his wife.
This means that only $43 million of the IPO proceeds will go to the company.
Upon its debut, Koufu will have a market cap of $349.8 million, which is 13 times its 2017 earnings.
The IPO comprises a placement tranche of 90.7 million shares and a public offer of 6.3 million shares.
The public offer closes at 12 noon on July 16, with trading to commence at 9am on July 18.
Koufu was founded by executive chairman and chief executive Pang Lim in 2002. His wife and executive director, Ng Hoon Tien, is a co-founder.
They will still own 78.7 per cent of Koufu after the IPO, or 75.5 per cent if an over-allotment option is exercised in full. The two have agreed to a six-month lock-up period on their shares.
Mr Pang said the response from investors was "not bad".
"Our cash flow has been good and stable, from the first day till now," he said in Mandarin.
Last year, Koufu generated a net cash flow of $51 million from operations.
Net profit was $26.8 million, up 3.8 per cent from 2016. Revenue was steady at $216.7 million.
Koufu derives 48.6 per cent of revenue from outlet and mall management.
Last year, it opened one new foodcourt and closed two underperforming ones where losses ran ahead of depreciation.
It was also unsuccessful in renewing the tender for another outlet.
Mr Pang said: "Over 16 years, the foodcourts we have closed are just these few." - THE STRAITS TIMES
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