ST Group prices IPO at $0.26 apiece

Its proceeds will fund the expansion of its franchise network and establishment of a new central kitchen in Malaysia.

Australia-based food and beverage firm (F&B) ST Group has launched its initial public offering (IPO) priced at $0.26 apiece, an announcement revealed.

The IPO, which was rolled out in conjunction with the firm’s proposed listing on the Catalist board of the Singapore Exchange Securities Trading (SGX-ST), comprises 30.08 million placement shares. At an issue price of $0.26 per share, the group’s market cap is expected to be approximately $64m.

An estimated net proceeds of $6.2m is expected to be raised from the placement, which will be used to expand the firm’s franchise network and introduction of new brands, the acquisition of new equipment and machinery for its Central Kitchen and corporate office in Australia, as well as to establish a new central kitchen in Malaysia.

ST Group has a diversified portfolio of six international brands comprising PappaRich, NeNe Chicken, Gong Cha, Hokkaido Baked Cheese Tart, IPPUDO and iDarts, as well as two brand concepts PAFU and KURIMU.

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"Our listing is a significant development in our corporate journey, which will provide a platform for ST Group to embark on business expansion supported by the capital that we will raise, whilst enhancing the visibility of our brands across our key geographical markets,” Saw Tatt Ghee, the firm’s executive chairman and CEO said.

The share placement will close at 12 noon on 1 July. Listing and trading of the company’s shares on Catalist is expected to commence at 9 a.m. on 3 July.

UOB is the sponsor, issue manager and placement agent for the IPO.

Concurrently with but separate from the placement, ST Group revealed that certain cornerstone investors have entered into subscription agreements with the company to subscribe for an aggregate of 6.92 million shares at the issue price. These include Chikaranomoto Global Holdings (3.85 million shares) and Hyein Foods Co. (3.08 million shares).

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

Photo from Gong Cha.