Food manufacturing group and brand builder OTS Holdings, known for its Golden Bridge canned luncheon meat, yesterday launched its initial public offering (IPO) for a Catalist listing on the Singapore Exchange.
It is offering around 41 million shares at 23 cents each for placement. The shares comprise around 40 million placement shares and a million shares under the Singapore public offer.
Of the placement shares, 2.2 million will be reserved for subscription or purchase by the group's management, employees, business associates and others who have contributed to the success of the firm, said the offer document.
Based on the invitation price and the post-invitation share capital of 214 million shares, OTS' market capitalisation upon the listing will be approximately $49.2 million.
The public offer opened at 6pm yesterday and will close at noon next Tuesday. Trading is expected to commence on June 17.
SAC Capital is the sponsor, issue manager, underwriter and placement agent.
The IPO and issuance of shares will deliver some $7.9 million in net proceeds, of which about $6.6 million will be due to OTS.
Funds will go towards expanding the group's regional footprint, investment in manufacturing capabilities, research and development, and general working purposes.
The group was founded by the late Mr Ong Tuan Seng in 1993, and was known as Golden Bridge Foods Manufacturing, specialising in shelf-stable and ready-to-eat meat products such as waxed sausages, meat floss and luncheon meat.
Over the years, the group launched brands such as Kelly's, which focuses on Western-style meat, and also halal food subsidiary Ellaziq Singapore, to capture a wider range of consumers.
Golden Bridge Foods Manufacturing had expanded beyond the Golden Bridge brand, so the management thought it was appropriate to establish a company to house the various brand names, managing director Ong Bee Chip said.
Through a restructuring exercise in 2014, OTS was established and it served as a stepping stone towards listing, said Mr Ong.
OTS' portfolio of brands include Golden Bridge, Kelly's, Golden Lion and Orchid. It has targeted the growing halal food market through retail brand El-Dina and food-service brand Kizmiq through its subsidiary Ellaziq Singapore.
OTS generates sales from supermarkets, convenience stores, provision shops and wholesalers, as well as from food-service providers such as hotels, restaurants, hawker centres, foodcourts and caterers.
It also has a presence on e-commerce platforms such as Qoo10, Shopee and Lazada.
OTS group financial controller Toh Kiam Hwee said regional expansion is among the group's near-term plans.
THE BUSINESS TIMES