Industrial real estate developer Soon Hock Enterprise Holding plans to sell $48.1 million worth of shares as the latest company to list on the Singapore Exchange’s (SGX) Mainboard.
A total of 83 million shares will be sold at 58 cents each. This consists of 18.8 million placement shares and about 2.8 million shares for the public. Founder and executive chairman Tan Yeow Khoon is also selling 16.6 million of his existing shares at the same price.
In addition, Soon Hock’s cornerstone investors have entered into separate agreements. They are: Amova Asset Management Asia, ICHAM Master Fund VCC, Maybank Asset Management Singapore, Maybank Securities and UOB Kay Hian, on behalf of certain high net worth clients, as well as five private investors, Deepak Lakhi Ramchandani, Gay Soon Watt, Ong Soon Liong, Toh Leong San Jack and Von Lee Yong Miang.
The cornerstone investors will subscribe for 61.4 million new shares valued at a total of $35.6 million. The company expects to raise about $34.6 million in net proceeds.
According to the release, the proceeds will be used to fund the acquisition of new land sites and buildings for development and redevelopment. It will also partly finance the cost of its existing property developments and redevelopment projects in the pipeline. Soon Hock currently has two upcoming projects under development, Stellar@Tampines and Skye@Tuas. The Tampines development is expected to receive its temporary occupation permit (TOP) in 1Q2026 while the Tuas development is expected to receive its TOP in 1Q2027.
Following the offering, Soon Hock will have 310.6 million shares and a market capitalisation of $180.1 million at listing.
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The group intends to recommend and distribute dividends of at least 25% of its net profit after tax from its listing date to Dec 31, and for the year ending Dec 31, 2026.
“Having delivered industrial projects with a combined gross development value (GDV) of over $1 billion, our group is well-positioned to capitalise on Singapore’s strength as a leading economic hub in the region, which has resulted in structural growth and rising demand for modern, high-specification industrial properties,” says executive director and CEO Tan Min Loon.
“We believe demand for factories, warehouses and worker dormitories will remain positive because of major ongoing infrastructure projects such as the Tuas Mega Port. This is further supported by Singapore’s strategic location as a logistics hub,” he adds.
The IPO will close at 12pm on Oct 14. Trading of the shares is expected to commence on a “ready” basis at 9am on Oct 16.
