Business

MindChamps PreSchool inks second master franchise deal

Mainboard-listed MindChamps PreSchool has inked a second master franchise deal since its initial public offer (IPO) in November, in a move to take the education company to Vietnam.

The agreement with Vietnam's Evergrande Group involves opening 20 centres in the country, the company said in a statement on Tuesday.

The first two - MindChamps PreSchool and MindChamps Reading Centres - are expected to open next year, in Ho Chi Minh city and Hanoi, the company's spokesman added.

The company's first deal included expanding into Myanmar and China.

In Myanmar, it signed a franchise agreement with Passion Capital Venture and the first centre is first expected to open in Yangon next August.

MindChamps's IPO price was 83 Singapore cents.

The offer of 30.45 million shares included a placement of 28.45 million shares that was 21.4 times subscribed, plus a public offer of two million shares, that were subscribed 83 times. About $34.5 million of the IPO proceeds have been earmarked for expansion.

As at Dec 20, the group has a market capitalisation of $187.24 million.

MindChamps was founded as an educational research centre in Australia in 1998. Its first preschool was opened in Singapore in 2008. Now, it has 10 company-owned and 44 franchisee-operated preschools and reading-and-writing centres across Singapore, Australia, the Philippines and the United Arab Emirates.

MindChamps' counter closed at 0.5 Singapore cents, down to 77 cents, at the end of trading. - THE STRAITS TIMES

BUSINESS & FINANCE