ST Group draws strong demand for IPO
SINGAPORE: ST Group Food Industries Holdings Limited has received positive interest for its initial public offering (IPO) of 30.077 million new shares at S$0.26 for each share in conjunction with its listing on the Catalist board of the Singapore Exchange Securities Trading Limited.
At the close of the placement on 1 July 2019, all 30.077 million placement shares were validly subscribed for with application monies received for these shares amounting to S$7.8million.
Concurrently, but separate from the placement, certain cornerstone investors, Chikaranomoto Global Holdings (3,846,100 shares) and HyeinFoods Co., Ltd. (3,076,900 shares), have subscribed for an aggregate of 6.923 million new shares at the issue price.
An aggregate of 37 million placement shares and cornerstone shares were issued to raise gross proceeds of approximately S$9.6 million. The placement Shares and the cornerstone shares will in aggregate represent approximately 15.0% of the company’s post-placement share capital.
Saw Tatt Ghee, Executive Chairman and CEO of ST Group Food Industries said, “We would like to extend a warm welcome to all our new shareholders. Thank you for your vote of confidence, and for believing in the growth story and future of ST Group. We are extremely excited to embark on this new journey with you. Our status as a listed company provides us a platform to enhance the visibility of our brands across our key geographical markets. Alongside the enlarged capital base from our successful listing, we believe we are now better-placed to build on our successes over the past seven years and elevate our business to the next level.”
The Group intends to use the estimated net proceeds of S$6.2 million raised from the IPO for business expansion, including the expansion of the Group’s franchise network and introduction of new brands and concepts; the acquisition of new equipment and machinery and the expansion of the Group’s existing Central Kitchen and corporate office in Australia; the establishment of a new central kitchen and corporate office in Malaysia; and general working capital purposes.