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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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Pasture Holdings Ltd



Pasture Holdings Ltd ("the Company" or "Pasture") is a pharmaceutical products and medical supplies and devices company based in Singapore. The Company is offering 20m placement shares at $0.25 each via placement. The IPO will close on 7 June and list on 9 June and the market cap based on the IPO price is $33m. 

Since there is no public offering, my coverage of this Company will be limited but I will highlight what potential investors may be keen to know.

The Company supplies pharmaceutical products and medical supplies and devices to businesses and governments. The various products and services are listed below.


The Company spent a fair bit of real estate (on the gatefold) to share the following:
  1. It has a tie up with McKesson (private label supply agreement) for medical, surgical supplies and devices that will expand its product portfolio  and distribution network
  2. It has a global footprint serving over 50 countries and targeting new markets such as India and Middle East
  3. There is strong demographic tailwinds and aging population that will result in strong global healthcare spending and that has a knock-on effect on its products and supplies
The Company also spent a fair bit of time to ask you to look beyond the near term revenue and profitability decline (think long term is what i am reading)... ðŸ˜† (Covid is over but not over)... even though Q1 has turned in a negative number $0.4m (blamed it on the fees charged professionals for the listing). See growth drivers and prospects in the diagram below.



According to the prospectus, it is listed the Company using EPS of 2.58 cents (post IPO share capital and assuming service agreement was in place) and the PER is 9.7x. This is fair if you are using the rear view mirror but if you want to price forward, then it will depend on what you think the FY2023 revenue and profitability will be in a "post-covid" environment

If i look at the revenue breakdown, Pasture started life as a mask and medical supplier (in FY2020) where 69% of the revenue (or $11.4m) was from masks. This is probably the peak of the demand as it drops to a more realistic $5.5m and $5.8m in FY2021 and FY2022 respectively. The Pharma wholesale and drop shipment increased steadily from $5.2m in FY2020 to $9.3m in FY2022 and is now the significant contributor to revenue over the last 2 years.

What I like about the Company
  • Healthcare sector - The Company is in a sector that is still growing as demands for such supplies and services is expected to continue growing 
Some of my concerns
  • Competitive industry - The masks products which the Company is making is not very sophiscated, hence there are many suppliers (even if Companies are trying to diversify their supply chain away from China). Pasture is in fact relying on major 3rd party manufacturers as it does not posses any manufacturing capabilities. The prices also fluctuate quite widely where the average selling price for the masks was 0.85 cents for N95 in FY2020, went up to $1.44 in FY2021 and drop to $0.67 in FY2022. This will make it quite challenging for investors to predict what the revenue numbers will be as it dropped further to $0.39 in 1Q2023 and this  probably due to lower demand as the world embraced the re-opening up and demand for masks dropped dramatically
  • Wholesaler - The Company is somewhat like a "wholesaler" and stock up on supplies but has little or no control over the quality of the products it procured. It also faces inventory risks if it is not able to accurately forecast the demand and supply and some of the products (such as vaccines) may have limited shelf lives.
My own views - based on the products that the Company is carrying and acting like a "middle-man", it will be tough business going forward in a post Covid environment. The Company has presented financials for the last 3 years, which I would regard as Covid Era and the best environment for it (despite it citing as a risk factor). 

Investors will have to bet on whether the Company can navigate in the new post-covid environment and whether you believe in the plans laid out (such as "Halal N95", Singapore Government using Pasture to restock and its blueprint to penetrate India). 

Given the small placmeent size, the placement was anchored by a prominent healthcare professional. Let's see if the placement was well managed on 9 June. I will give it a 1 chilli rating if there is a public offering. Good luck to those who subscribe for the placement.

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