Jumbo Group’s IPO gets oversized as proceeds hit $40.1m

It’s the largest Singapore IPO so far this year.

Jumbo attracted overwhelming interest from investors for its IPO of 88,233,00 shares at $0.25/share in conjunction with its proposed listing on SGX-ST’s Catalist Board, according to a report by the company.

Around $21.5m was raised thanks to the 86,173,000 placement shares that were validly subscribed for, out of the 86,233,000 available. The 2,000,000 shares available to the public were 8 times subscribed, amounting to $155.2m.

Gross proceeds from cornerstone investors Ron Sim Chye and Orchid 1 Investments reached $18m. In an aggregate of 72,100,000 shares, 5% will be held by Ron Sim Chye and 6.2% by Orchid 1.

Thanks to cornerstone investors and the resources raised from the invitation, gross IPO proceeds came to a whopping $40.1m. Jumbo plans to channel net IPO income of about $37.5m for working capital and general corporate purposes as well as to establish new outlets and refurbish existing ones, and acquire new premises, equipment and machinery.

Based on the $0.25 issue price, the company’s post-market capitalisation will be approximately $160.3m. Listing and trading of Jumbo shares started today at a strong $0.35.

“We are heartened, yet humbled, by the strong response that our IPO has garnered. With the successful conclusion of our IPO, which is also the largest Singapore IPO year-to-date for 2015, it bears testament to the investing public’s faith in Jumbo as a home-grown enterprise, our proven track record and the positive prospects. We are glad that with our listing, many of our stakeholders, including the public, are now able to participate alongside Jumbo’s growth,” said Ang Kiam Meng, Jumbo’s CEO and Executive Chairman.