The Katrina Group, a food and beverage group, launched an initial public offering (IPO) yesterday with a placement-only offer of 35.8 million shares at 21 cents each ahead of a Catalist board listing.
The group expects to raise $7.5 million from the IPO, representing 15.4 per cent of its post-invitation share capital.
The placement of shares will close at noon on July 22, and trading of Katrina's shares on the secondary board is set to start on July 26.
The Katrina Group has a market capitalisation of $48.6 million, and a post-placement share capital of 231.5 million shares.
The price earnings ratio is estimated at 9.6 times.
The Katrina Group operates 32 restaurants in Singapore and two in Beijing... It plans to open at least two restaurants in Kuala Lumpur within the next 12 months.
The Katrina Group's revenue grew at a compounded annual growth rate (CAGR) of about 13.5 per cent from 2013 to last year, registering $40.7 million in 2013, $45.4 million in 2014, and $52.4 million last year.
Pre-tax profit recorded a CAGR of about 8.6 per cent, from $4.3 million to $5.1 million between 2013 and last year. The profit before tax margin averaged 9.9 per cent over the same period.
Hong Leong Finance is the sponsor, issue manager and placement agent of the IPO and the listing on the Catalist board.
The Katrina Group aims to expand its online food business to its nine food and beverage brands - Bali Thai, RENNthai, So Pho, Bayang, Indobox, Honguo, Hutong, Streats and Muchos. Katrina's brands serve a variety of cuisines such as Thai, Vietnamese, Indonesian, Hong Kong, Yunnan and Mexican.
Four of the company's brands are halal-certified: Bali Thai, Streats, So Pho and Indobox.
"We are ready to implement our growth strategy at a faster pace to further raise our visibility and enhance our brands both locally and overseas," said Mr Alan Goh, founder, chief executive and executive chairman of Katrina Group.
"We would like to strengthen our market share through an expansion of our operations, and potentially enter into new complementary businesses.
"The IPO provides us with a growth platform, and offers an opportunity for the investing public, and our employees and business associates who have contributed to the success of Katrina's business, to participate in our exciting prospects ahead," Mr Goh added.
The Katrina Group operates 32 restaurants in Singapore and two in Beijing, China.
It plans to open at least two restaurants in Kuala Lumpur within the next 12 months under the So Pho and Streats brands.
It has identified Malaysia, Vietnam and Indonesia as potential markets for expansion.