No Signboard Holdings Ltd is the brainchild behind the white pepper crab. Its Singapore-listed peer is JUMBO Group Ltd (SGX: 42R), which is famous for its chilli crab. Jumbo was listed just two years ago, but its share price has surged 134%.
Is No Signboard trying to follow the chilli crab purveyor’s footsteps by going public too? We would not know for sure but what we know from its initial public offering (IPO) prospectus is as follows:
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1. No Signboard Holdings has been around for more than 30 years and has three main business segments – restaurant, beer, and ready meal.
2. Under the restaurant business, it owns and operates three restaurants located at the Esplanade, VivoCity and The Central @ Clarke Quay. It has one restaurant under a franchise agreement.
3. Under the beer business, it owns Draft Denmark brand of premium beers and they are sold at over 150 points of sale in our country. It also distributes certain third-party beer brands and is an original equipment manufacturer beer supplier for third-party brands.
4. The ready meal segment was started in April 2017 and offers No Signboard Seafood-inspired dishes such as chilli crab spaghetti, Hokkien mee and nasi briyani under the Powered by No Signboard brand.
5. A total of 65.7 million shares will be on offer during the IPO period at a price of S$0.28 apiece. 2.5 million shares will be for public subscription while the remaining 63.2 million shares will be placed out.
6. The listing will raise net proceeds of up to S$32 million. No Signboard Holdings plans to use the proceeds mainly to develop its beer business, establish a new chain of casual dining restaurants, develop its ready meal business, and for general working capital purposes.
7. Post-IPO, GuGong will hold a 73% stake in the food and beverage firm, the public will own 2% while cornerstone investors will have 12.8%. GuGong is an investment vehicle controlled by chief executive officer, Sam Lim, and chief operating officer, Lim Lay Hoon, who are siblings.
8. With 462.4 million shares outstanding post-listing and an IPO price of S$0.28, the firm is going at 18.4 times its earnings for the financial year ended 30 September 2016. Using the price-to-book metric, it is going at 5.7 times its book value.
9. No Signboard Holdings intends to distribute at least 30% of its net profit after tax in 2018 and 2019 as dividends.
10. The IPO is open from 23 November 2017 to 28 November 2017 (12:00 pm). Trading is expected to commence on 30 November 2017 (9:00 am).
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Editor's Note: The article has been edited for clarity.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.