Courts Asia IPO is a go

Electronics and furniture retailer has an offering price of S$0.77 per share.

Courts Asia Limited ("Courts Asia" and together with its subsidiaries, "the Group") said it has registered its Prospectus with the Monetary Authority of Singapore for a listing on the Mainboard of the Singapore Exchange Securities Trading Limited (“SGX-ST”). 

Courts Asia is launching its initial public offering (“IPO”) of 178 million Offering Shares at the Offering Price of S$0.77 per share, the top end of indicative price range, due to strong support from institutions during its book-building international road shows.

Courts Asia is offering 60 million new Shares and Singapore Retail Group Limited (“the Vendor”) is offering 118 million existing Shares for subscription and/or purchase.

The Enlarged Offering of 178,000,000 Shares comprises:

(a) an international placement of 76,895,000 Offering Shares to institutional and other investors in Singapore, outside the United States (the “Placement”);
(b) an offering of 8,900,000 Offering Shares to the public in Singapore (the “Public Offer”);
(c) 77,920,000 Shares offered under the Cornerstone Tranche; and
(d) 14,285,000 Shares offered under the Management Subscription Tranche.

The Global Offering comprises the Placement, Public Offer and Cornerstone Tranche.

Collectively, subscription by the four cornerstone investors amounted to total investments of S$60 million, representing 44% of the Enlarged Offering. The cornerstone investors are JF Asset Management Limited, New Silk Road Investment Pte Ltd, Target Asset Management Pte Ltd and Value Partners Hong Kong Limited.

Courts Asia’s Executive Director and Chief Executive Officer, Mr Terence Donald O’Connor, and Executive Director and Chief Financial Officer, Ms Kee Kim Eng, will subscribe for and/or purchase 14.3 million Shares under the Management Subscription Tranche, amounting to a total investment of S$11 million. Mr O’Connor, together with the four cornerstone investors, has each subscribed for more than 5% of the Global Offering.

Upon the completion of the IPO, Courts Asia’s total number of issued and outstanding shares will be 560 million shares. Its market capitalisation will be approximately S$431 million, based on the Offering Price of S$0.77.

“We firmly believe in Courts Asia’s strong fundamentals. We are therefore delighted that four leading funds in Asia are investing as cornerstone investors," said Mr O’Connor.