Jumbo Group Limited - Balloting Results

Posted by Mr. IPO October 13, 2024

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 tax a

Jumbo announced that its shares was 8x subscribed. The 2m public tranche was >300x subscribed so it will be a tough act to get.

Jumbo is indeed very hot... Looking at the list of institutional investors. No wonder the 2m public offering is only for making sure there is sufficient headcount. The list of institutional investors (besides the Cornerstone we already know) are listed below.

The investors are mainly reputable "long only" asset managers such as Fidelity, Lion Global and Nikko. These bode well as for Jumbo as they were not deterred even though it is a Catalist board listing!

As for public investors, I am afraid it is really difficult to get. Investors who apply for 50 lots will get a 3:99 chance and be allocated 8,000 shares. Thank your lucky stars if you can get it.

I am expecting a nice big pop on Monday .

Happy Jumboing

Comments

James said…

I'm quite surprised by all the big name institutional investors in this IPO, certainly bode well for its long term prospects.

Just a question, are investors in the placement tranche tied down by a 'lock-in' period?

What's your guess for the price gain on Monday? :D

7 November 2015 at 09:45