No Signboard starts taking orders for IPO

No Signboard's chairman Sam Lim (left) and his business partner Lam Zhi Loong set up The Ma2 Shop, which has six outlets of vending machines selling items such as snacks, ready-to-eat meals and medical supplies. No Signboard will use IPO proceeds to
No Signboard's chairman Sam Lim (left) and his business partner Lam Zhi Loong set up The Ma2 Shop, which has six outlets of vending machines selling items such as snacks, ready-to-eat meals and medical supplies. No Signboard will use IPO proceeds to expand its ready-meal business.ST FILE PHOTO

HONG KONG • Singapore seafood hawkers have been competing for decades in the country's notoriously competitive culinary scene. Now they are vying for the favour of stock market investors.

No Signboard Holdings, known for its signature white pepper crab dish, started taking orders this week for an initial public offering (IPO) that could value the company at as much as $130 million.

It is seeking to replicate the success of long-time rival Jumbo Group, the chilli crab purveyor whose shares have more than doubled since its first-time share sale in October 2015.

Investors are already lining up for No Signboard's offering. Local businessmen are committing some of their own money, including Mr Kenneth Goi, chief operating officer of property developer GSH Corporation, and Mr David Lam, founder of bulk container provider Goodpack, according to a prospectus.

An asset management arm of JPMorgan Chase has also agreed to buy stock as a cornerstone investor, the prospectus shows.

"It's a very unique type of restaurant," said Mr Toshihiko Takamoto, a Singapore-based money manager at Asset Management One, adding that he has enjoyed meals at No Signboard's eateries.

"A lot of retail investors will probably like this deal, especially if the company starts handing out dividends. It's a familiar name to them."

FAMILIAR NAME

A lot of retail investors will probably like this deal, especially if the company starts handing out dividends. It's a familiar name to them.

MR TOSHIHIKO TAKAMOTO, a Singapore-based money manager at Asset Management One.

No Signboard's IPO is seeking to raise as much as $35 million. Investors are being offered 125 million shares at 23 cents and 28 cents apiece, according to terms for the deal obtained by Bloomberg.

Proceeds will go towards developing the company's beer business, which sells proprietary brews under the Draft Denmark brand, as well as establishing a new chain of casual dining restaurants and expanding its ready-meal business.

The company is taking investor orders to Nov 17. It aims to price the offering on Nov 23 and begin trading on Singapore's junior Catalist market on Nov 30, the terms show. OCBC Bank is sole bookrunner of the offering, while RHT Capital is acting as issue manager and sponsor.

BLOOMBERG

A version of this article appeared in the print edition of The Straits Times on November 10, 2017, with the headline 'No Signboard starts taking orders for IPO'. Print Edition | Subscribe