SINGAPORE - MindChamps Preschool, Singapore's largest provider of premium preschools by market share, on Friday (Nov 17) offered 30.4 million shares at $0.83 each for an initial public offering that values the company at S$200.5 million.
The offering comprises 28.4 million new shares and 2.1 million shares sold by MindChamps Holdings, an investment holding company.
Of the IPO shares, 2 million will be offered for public subscription, and 28.4 million for placement. Of the placement shares, 2.4 million shares are reserved for management.
MindChamps Holdings will sell additional shares if required to cover an over-allotment option for a further 1.8 million shares.
Cornerstone investors - comprising Hong Kong-listed China First Capital Group, Hillhouse Capital Management and Target Asset Management - will subscribe for an additional 28.9 million shares separate from the IPO.
MindChamps - whose existing shareholders include Singapore Press Holdings - is seeking a listing on the Singapore Exchange's Mainboard.
Assuming the over-allotment option is not exercised, the offering will raise S$49.2 million of gross proceeds from both the IPO and the cornerstone placement, of which about S$47.6 million will be due to the company.
MindChamps has earmarked S$6.1 million to partially repay an outstanding acquisition loan; S$34.5 million for expansion plans, including potential acquisitions; S$4 million for general corporate purposes and working capital; and S$3 million for listing-related expenses.
The company, led by founder David Chiem, said that it has more than 8,000 students enrolled, and employs more than 1,000 teachers globally.
In Singapore, it has 36 centres, giving it a 38.5 per cent share of premium-range preschools.
The offering will close at noon on Nov 22, and the shares will start on Nov 24.