ST Group clinches $9.6m from IPO

The firm’s post-placement market cap is at approximately $64m.

Australia-based food and beverage (F&B) firm ST Group’s initial public offering (IPO) raised $9.6m after an aggregate 37 million placement shares and cornerstone shares were issued at the placement’s close on 1 July, an announcement revealed.

At an issue price of $0.26 apiece, the IPO was rolled out in conjunction with the firm’s proposed listing on the Catalist board of the Singapore Exchange Securities Trading (SGX-ST). The IPO comprised 30.08 million placement shares, which were all validly subscribed for with application monies received amounting to $7.8m.

Also read: ST Group prices IPO at $0.26 apiece

Concurrently but separate from the placement, certain cornerstone investors subscribed for an aggregate of 6.92 million new shares, with Chikaranomoto Global Holdings subscribing for 3.85 million shares and Hyein Foods Co. for 3.08 million. Chikaranomoto Global Holdings is a wholly-owned subsidiary of Chikaranomoto Holdings Co. and is the owner of the IPPUDO brand, whilst Korean firm Hyein Foods Co. is the owner of the NeNe Chicken brand.

The placement shares and the cornerstone shares will in aggregate represent approximately 15% of the company’s post-placement share capital.

The group intends to use the estimated net proceeds of $6.2m raised from the IPO for business expansion, including the expansion of the group’s franchise network and introduction of new brands and concepts, the acquisition of new equipment and machinery and the expansion of the group’s existing Central Kitchen and corporate office in Australia, and the establishment of a new central kitchen and corporate office in Malaysia.

ST Group’s post-placement market cap is approximately $64m based on the issue price and the company’s enlarged share capital of 246 million shares. The shares are expected to commence trading on Catalist at 9 a.m. on 3 July.

United Overseas Bank (UOB) is the sponsor, issue manager and placement agent for the IPO. 

Photo taken from Gong Cha.