Soon Hock Enterprise Holding has lodged its preliminary prospectus with the Monetary Authority of Singapore (MAS) for the proposed listing of the company on the mainboard of the Singapore Exchange Securities Trading (SGX-ST).
The industrial real estate developer is in the business of developing and selling industrial properties before completion and construction of properties. The company says that it has been involved in the launch of more than 1,200 units of strata-titled industrial properties in the country.
For the company, revenue is recognised when control over the property has been transferred to the customer.
Currently, the group’s property development projects are located in Singapore and they are looking to acquire land sites or properties in Singapore for development and redevelopment through tenders or direct purchase to expand its portfolio.
Soon Hock says that its competitive strength lies in its deep understanding of the specific requirements of industrial space end-users. Key to this example is the group’s ongoing development at Skye@Tuas which has been designed with heavy-duty logistics and transport users in mind.
Soon Hock says that it also has partnerships with companies that offer strong design and build capabilities, and has a strategic selection of location.
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For the period under review, which includes FY2022 to FY2024 and 1QFY2024 and 1QFY2025, the group’s revenue was mainly derived from property development income from the development and sale of industrial development properties, which accounted for 0%, 99.5%, 82.6%, 2.3% and 0% of revenue respectively.
Revenue also came from rental income from leasing of its investment properties, which accounted for 100.0%, 0.5%,17.4%, 97.7% and 100.0% of its total revenue in FY2022, FY2023, FY2024, 1QFY2024 and 1QFY2025 respectively.
Soon Hock’s revenue for FY2024 was $7.9 million, a 97% y-o-y decrease from the $264.7 million revenue for FY2023. This was primarily due to the absence of sale of development property in FY2024, as there was no TOP issued for any new development project.
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Revenue from rental income from investment properties for both FY2023 and FY2024 was stable at $1.3 million and $1.4 million respectively, from its leases at 13 Tuas South Street 6 and four leasehold strata-titled industrial properties at Premier @ Kaki Bukit.
Gross profit for FY2024 was $3.8 million, a 94.3% y-o-y decrease from $66.4 million for FY2023 due to the absence of revenue recognised from the sale of development property during FY2024.
For the 1QFY2025, Soon Hock’s revenue stood at $700,000, derived entirely from rental income of its investment properties, primarily due to commencement of master lease at its newly completed 300-bed workers’ dormitory, canteen and minimart.
The group’s current assets as at Dec 31, 2024 was $316.5 million, representing about 87.7% of its total assets. This includes development properties which amounts to $281.6 million, cash and cash equivalents which amounts to $18.6 million, and trade and other receivables which make up $16.4 million.
Soon Hock intends to use the net proceeds from the initial public offering (IPO) for the acquisition of new land sites and buildings for development and redevelopment, to partly finance the cost of developing 20 Shaw Road, and partial funding of existing property development projects in the pipeline, including part of redevelopment costs of the properties at Senang Crescent.
Soon Hock’s founder and executive chairman is Tan Yeow Khoon. Soon Hock Enterprise is not Tan's first listed company. He was executive chairman of logistics company Cogent Holdings, privatised after Cosco Shipping acquired the company for $490 million in 2017, presumably as part of China's bid to roll out its Belt and Road Initiative.
As indicated in the draft prospectus, cornerstone investors for this listing include Amova Asset Management, the recently renamed Nikko Asset Management and ICHAM Master Fund VCC.
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There also various entities and individuals under Maybank, such as Maybank Asset Management Singapore; Maybank Securities, on behalf of certain high net worth clients, and also two trading representatives, Deepak Lakhi Ramchandani and Jack Toh Leong San.
Other named individual cornerstone investors are Gay Soon Watt, former deputy chairman of Goodrich Global Holdings; Ong Soon Liong, described as a "seasoned developer and investor" with projects such as Macpherson Mall; Von Lee Yong Miang, chairman of Expand Construction.
Last but not least, there's UOB Kay Hian, subscribing on behalf of certain high net worth clients who were not named.
Maybank Securities and United Overseas Bank are the joint issue managers, joint global coordinators and joint bookrunners for the proposed IPO.
