Homegrown F&B operator Koufu launched IPO at 63 cents each

It eyes proceeds of $45.5m and a market cap of $349.8m.

Koufu, a homegrown operator and manager of food courts and coffee shops, launched its initial public offering (IPO) of 97,008,000 shares at 63 cents each. It aims to raise proceeds of $45.5m.

According to an announcement, Koufu offering 51,163,000 new shares, whilst its controlling shareholder Jun Yuan Holdings Pte Ltd is offering 45,845,000 shares. The proceeds of the offering will go to the capital expenditure for an integrated facility, refurbishment and renovation of its new and existing food & beverage (F&B) outlets, and business expansion.

Maxi-Harvest Group, One Hill Investments, and Qilin Asset Management entered into a cornerstone subscription agreement with Koufu to subscribe for a total of 21 million shares. Upon completion of the IPO and the issuance of the cornerstone shares, Koufu's market capitalisation is expected to be approximately $349.8m.

The offering will close at noon on 16 July 2018. The listing and trading of Koufu’s shares are expected to commence on a “ready” basis at 9 a.m. on 18 July 2018. DBS is the sole issue manager, global coordinator, bookrunner, and underwriter of the IPO.

Koufu executive chairman and CEO Pang Lim commented, “Having established a strong brand awareness and reputation for serving quality food at affordable prices, we have grown to an organisation comprising, among others, 47 food courts, 14 coffee shops and 81 self-operated F&B stalls in Singapore within a relatively short span of 16 years. We also have a presence in Macau and have begun negotiations with several commercial landlords and developers to establish new F&B outlets in Macau.”

Koufu’s business comprises two business segments: outlet & mall management; and F&B retail. Koufu proposes to establish an integrated facility in Woodlands Avenue 12 by 2020 that will span 20,000 sqm in total gross floor area, more than five times larger than the aggregate gross floor area of its existing central kitchens and headquarters.