The $48.1 million IPO of industrial properties developer Soon Hock Enterprise, which closed on Oct 14, is 9.8 times subscribed.
For the 2.8 million shares available in the retail tranche, there were 1,444 applications for a total of 47.3 million shares, which makes this 16.9 times subscribed.
The larger international offer of 18.78 million shares received interest worth $95.1 million, which makes this tranche 8.7 times subscribed.
In addition, this issue attracted cornerstone investors who together put in $35.6 million.
"With the funds raised, we intend to actively pursue market opportunities to acquire new land sites and buildings for development and redevelopment," says executive director and CEO Tan Min Loon.
Part of the proceeds will also be allocated to partly finance the cost of the company's existing property development and redevelopment projects in the pipeline.
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This includes freehold industrial properties at 20 Shaw Road and 56, 58, 60, 62 Senang Crescent, which will add to the company's portfolio of income-generating assets when completed, says Tan.
As typical of developers, the company's revenue and earnings can be lumpy. From FY2022 to FY2024, it reported total revenue of $1.3 million, $264.7 million, and $7.9 million, respectively. Revenue for its 1QFY2025 ended March stood at $651,000.
In FY2022 to FY2024, earnings stood at $2.6 million, $29.4 million and $3.3 million, respectively, while it reported a loss of $578,000 in 1QFY2025.
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Going forward, Soon Hock Enterprise will be booking revenue from projects such as Stellar@Tampines, which is expected to obtain its partial Temporary Occupation Permit (TOP) in 4Q2025 and full TOP in 1Q2026.
Next up is Skye@Tuas, which is expected to obtain its partial TOP in December 2026 and full TOP in 1Q2027.
This issue is jointly handled by Maybank Securities and UOB.
Trading of Soon Hock Enterprise’s shares will commence at 9 am on Oct 16.
