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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 tax a
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Singapore IPO Tikams for 2019

2019 is an extremely bad year for IPOs in Singapore.
Source: Shareinvestor.com
There were only a pathetic 11 IPOs of which 7 were available to the investing public. For retail investors who can only apply for the shares through the ATM, you will realistically be able to get Lendlease, Prime US Reit, Eagle Hospitality Trust and ARA Hospitality Trust USD. 

 Few takeaways:
  • Hospitality Trusts are still not in favor with local investors
  • Eagle dumped the shares on retail and coupled with the "Queen Mary" PR nightmare, the share price crashed.  Not to mention some related party transactions that caused investors jitters
  • Reputation of the Sponsors are extremely important. REITs that are managed by known and reputable sponsors such as Lendlease and Prime are better sought after
  • Small cap IPOs, if "well controlled", can still rise from their ashes after a bad debut 
Since my IPO tikams are reported annually, 2019 will be no exception. You can search for prior year results here.


I had wanted to participate in an IPO in a big way but eventually it was canned. I also participated in an HK IPO but eventually the allocation was quite small, so i made about $207. Since it is not a local IPO, i did not include it in the 'tikam'. I wasn't successful in my IPO application for Lendlease REIT, so the end results is a big fat Zero! 😅

2019 certainly didn't do well for Mr. IPO by historical standard. It also showed the state of our market here. Hope 2020 will be the start of a new decade of better IPOs.

Here is wishing all readers a Happy 2020 with lots of love 💝, good health 💪 and abundant wealth 💰







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Anonymous said…
Looks like time for next better players to step forward and run SGX?
2 January 2020 at 08:44
JiakBaVehFree said…
transcab writeup sir!
2 January 2020 at 16:44
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