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Food Innovators Holding Limited

Food Innovators Holdings Limited ("FIH" or the "Company") is offering 14m shares at $0.22 each, for which 13m shares will be through placement and the remaining 1m shares via a Public Offer. The IPO will close on 14 Nov at 12 noon and starts trading on 16 Oct 9am.  FIH has two business models - the first is to be a master lease and sublease the space to other tenants and the second is to operate and manage restaurants.  The Company currently has 12 restaurants in Japan, 10 in Singapore and 4 in Malaysia. The market cap based on the IPO price is around $24.9m. Financial Highlights FIH's revenue grew from $37.8m in FY2022 to $43.8m in FY2024. It is quite funny to see that being a master land lease holder has a higher margin than operating the restaurants, once again illustrating the point that it is better to be a landlord to shake leg and collect rent. According to the prospectus, the PER is around 19x. The Company intends to pay 20% of its net profit after ...
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First Sponsor Group - Balloting Results

First Sponsor Group announced its balloting results where the invitation is 1.75x subscribed. I must say this is a weak subscription.

The public tranche balloting rato are as follows:


The probability of getting some shares if you apply is more than 50%, with those applying 10 to 49 lots getting 4 lots each. 

I don't see any big names in the placement tranche other than the cornerstone that was announced earlier but not part of the invitation and this is such a poor announcement where they did not even disclose how many shares were allocated to the three "substantial applicants" below other than a cursory "more than 5%". Terrible.


I have given my rating on this stock previously. If you asked me if i am "bearish" for its IPO debut, i have to tell you that my gut feel is that it should debut above its IPO price for a few reasons.

  1. The shares are tightly held. There are no much free float and i believe the holders are strong hands and the tycoons have many friends.
  2. The shares are fairly priced whereby the sponsor sold at book value but its at a discount to the market value. 
Having said that, i am not expecting a firework kind of debut as well. It will do well to hold between $1.50 to $1.60. Anything above $1.60 will be a bonus to me.

Happy IPOing.


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Anonymous said…
what about Alliance Minerals?
20 July 2014 at 12:30
Anonymous said…
Pretty favourable comments in yesterday's ST on FIRST SPONSOR. 7.7xs subscribed. Hong Long and Kwek 's brand names should add credence to the counter.

So you have been lucky again in your ipo bid ??? If so good for you.
20 July 2014 at 16:01
Mr. IPO said…
Haha unfortunately never apply. :) good luck if you got this
20 July 2014 at 16:17
Anonymous said…
Debut for First Sponsor not as good, btw would u be commenting on accordia golf trust?
22 July 2014 at 20:06
Anonymous said…
Hi Mr Ipo, this no vol at all... hong leong nv come out and support...

if u were me, wld u continue holding and hope for best or just cut??
23 July 2014 at 22:53
Mr. IPO said…
I really don't know ah. Depends on how many lots u have and why u applied for it leh. Already say not puntable. :( you doing national service for them?
25 July 2014 at 08:49
Anonymous said…
8lots... haiz... my naive thinking that hong leong etc will hold it...
25 July 2014 at 09:13
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