SINGAPORE – YKGI, the group that operates Yew Kee Duck Rice and bubble tea brand Chicha San Chen in Singapore, is eyeing a Catalist listing.
The initial public offering (IPO) will not have a public offer and comprise only a sole placement tranche, the group said in a preliminary offer document lodged on Dec 30.
YKGI, which was incorporated in 2022, is owned by a company controlled by executive chairman Seah Boon Lock, the founder of Yew Kee Duck Rice (previously known as Yu Kee Duck Rice), which has been around since the 1980s.
The group is looking to raise capital for business expansion, which includes opening new outlets in Singapore and overseas and bolstering its franchising and sub-franchising operations.
YKGI operates eight food and beverage brands, namely Yew Kee Duck Rice, Chicha San Chen, XO Minced Meat Noodles, My Kampung Chicken Rice, PastaGo and Victoria Bakery, as well as the My Kampung and Fine Food foodcourts.
To date, it operates one central kitchen, 44 food outlets and four foodcourts, and exclusively franchises all 29 Chicha San Chen outlets in Singapore. The group was granted a franchise and licence to operate the bubble tea brand in Singapore for 10 years, starting from Jan 14, 2019.
YKGI recorded an unaudited net profit of $2.4 million for the first half of 2022.
It posted an audited net profit of $1 million and $4.9 million for financial years 2019 and 2020 respectively, and $8.9 million for financial year 2021.
Revenue was $26.8 million in the first half of 2022 and $56.1 million in financial year 2021. Revenue in financial year 2020 was $39 million, and $31.6 million in financial year 2019. YKGI’s cash and bank balances stood at $14.8 million as at June 30, 2022.
The Chicha San Chen franchise contributed 39.8 per cent to the group’s total revenue in financial year 2021. Nearly half, or 48.6 per cent, was from its F&B operations, while 11.5 per cent of revenue was from its foodcourt business.
The group intends to seek more franchise opportunities to enhance its existing portfolio. It also plans to expand and upgrade its central kitchen and warehouse, as well as explore strategic acquisitions and joint venture partnerships.
Its cornerstone investors include Mr Teo Kee Bock, founder of Super Group, and Huan Yong Group – the investment vehicle of Mr Ronald Te and his family. Mr Te was also a founder of Super Group, known for its three-in-one beverage products.
RHT Capital is the issue manager and full sponsor for the IPO, while Evolve Capital Advisory and KGI Securities are joint placement agents. THE BUSINESS TIMES
