Pawnbroker ValueMax launches IPO at 51 cents per share

ValueMax has become the first pawnbroker to seek a mainboard listing on the Singapore Exchange.

It is offering 138 million new shares in its initial public offering (IPO) at 51 cents each, according to a prospectus registered with the Monetary Authority of Singapore on Monday.

Of these, five million shares will be available to the public, while the remaining 133 million will be placed out to investors.

The new shares will represent about 25.9 per cent of the enlarged share capital after the IPO.

ValueMax is planning to use the IPO's net proceeds of about $66.3 million for the expansion of its business as well as for working capital purposes.

Founded by managing director and chief executive Mr Yeah Hiang Nam, 65, ValueMax will still be largely owned by the Yeah family.

It will be the third pawnbroking chain to go public after Maxi-Cash Financial Services and MoneyMax Financial Services made their trading debuts on the SGX's Catalist board in the last 18 months.

ValueMax's directors are proposing to distribute dividends amounting to 50 per cent of the company's net profit for the three financial years up to 2015.

Since 2010, ValueMax's revenue has grown 27.8 per cent to break the half-billion dollar mark at $509 million last year.

The public offer will open at 5pm today, Oct 21, and end at 12 noon next Monday, Oct 28.

Trading is expected to commence next Wednesday, Oct 30, at 9am.