Foodstuffs maker Leong Guan Holdings is seeking to raise around $4.7 million via its initial public offering (IPO) placement of 20.65 million shares at 23 cents apiece.
The placement, which comprises 16.3 million new shares and 4.35 million of vendor shares, will be made available to retail and institutional investors. Investors may apply to and subscribe for any number of shares in multiples of 1,000.
Following the issuance of its new shares, Leong Guan’s post-placement share capital will increase to 101.2 million shares valued at $4.45 million.
As at Nov 28, the company’s share capital comprises 83.8 million shares valued at $800,003.
After the placement, executive director and chairman Lim Tze Chiang and executive director and managing director Lim Hock Chai will hold direct and deemed stakes of 39.2% and 36.8% in the company from 52.5% and 49.7% previously. Executive director Chua Lian Hock will have a total stake of 34% in the company post placement, from 46.3% previously.
The remaining substantial shareholders and other shareholders will see their stakes remaining unchanged.
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According to the group, it intends to allocate $300,000 of its proceeds to expand its export markets and diversify its product range. It also intends to use $700,000 to enhance its manufacturing facilities. Another $600,000 will go towards acquisitions, joint venture partnerships and strategic alliances to expand the business, while $549,000 will go towards general working capital.
Net of total listing expenses of $1.6 million, the group expects to raise $3.74 million from the issue of its new shares.
The group has proposed to distribute a minimum of 80% of its net profit to shareholders in FY2035 and 35% of its bottom line in FY2026.
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In FY2024, the group’s revenue stood at $37.5 million while profit before tax stood at $2 million. Profit for the period came up to $1.7 million.
In the 3MFY2025, revenue stood at $9.4 million. Profit before tax stood at $221,000 while profit for the period stood at $232,000.
Zico Capital is the sponsor, issue manager and placement agent of the listing. Foodstuffs maker Leong Guan Holdings is seeking to raise around $4.7 million via its initial public offering (IPO) placement of 20.65 million shares at 23 cents apiece.
