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IPO Chilli Ratings

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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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Winking Studios Limited

For Information Only - Offer via Placement closed on 15 Nov 2023



Winking Studios Limited ("Winking" or the "Company") is offering 27.2m Placement Shares at $0.20 each and concurrently 12.8m Cornerstone Shares for a listing on Catalist. The IPO closed on 16 Nov and will start trading on 22 Nov. As there is no public offering, I will lodge this for records purposes.

Winking is one of Asia's largest game art outsourcing studios and an established game development company (The 3rd largest per the prospectus). The Company has more than 25 years of experience and is headquartered in Singapore with seven studios across Nanjing, Shanghai and Taipei and over 700 employees. The Company is majority owned by Acer Gaming, which is part of the Acer Group, which has an extensive network of relationships in the art outsourcing and game development industries.

The Company has developed and collaborated on internationally renowned game titles and projects, including Assassin's Creed, Destiny 2, FIFA Online 4 and Genshin Impact. The strong track record has led to collaborations with 19 out of 25 global game companies and some of the developers include NetEase, Ubisoft, Electronic Arts and Nintendo and has partnerships with Sony, Microsoft and Nintendo.

Financial Highlights



The Company made a revenue of US$24.498m and profit of US$1m in FY2022, a drop from US$3.151m in FY2021. The profitability continues to trend lower in 1Q 2023. Using EPS of 0.37 US cents for FY2022, it implies a PER of 20 Singapore Cents divided by (0.37 x 1.35)  = 40x.   

What I like about the Company
  • Strong secular tailwinds - Gaming is now one of the largest industries in the world and there is an increased demand for art work for game developers. The demand for games is global in nature and according to the prospectus, the market will continue to grow by a CAGR of 8.9% till 2027 while the global game art outsourcing trend will continue growing at 13.4% CAGR till 2027.
  • Strong parentage with plans to enhance global presence - The Company is majority owned by Acer Gaming that is listed in Taipei and in turn is a subsidiary of Acer Inc (also listed on Taiwan Stock Exchange). The Company intends to set up offices in Malaysia, Indonesia and the Philippines. I guess this is called talent cost arbitrage. The IPO also received strong support from the parent and the management team.
  • Strong clientele and partnerships - The Company has a blue chip list of clients that includes the so and so in this sector.

Some of my concerns
  • Threats posed by AI - With many start up in the AI space using machine learning to create proprietary and creative work art (such as mid-journey), this sector could potentially be disrupted by new start ups
  • Valuation seemed high - Given I am not privy to 2023 results, the PER seemed high when I used the FY2022 results. Looking at the Q1 2023 results, the down trend doesn't seem to have "reversed".
  • Crack down by the Chinese government on the gaming sector - The Company derived most of the revenue from China and looking at the profitability trends, I believe it is somewhat affected by this crackdown as well. Perhaps this is why the Company is diversifying out of China to the SEA region.
Placement results

The Company announced that its placement was fully placed out. Asdew Acquisitions (Alan Wang) subscribed for 2m shares. He used to be very active in the IPO placement market, so I guess he is helping to "support" the share price. 

Mr IPO thoughts

This is an interesting company and I am glad they chose to list here instead of Taipei (perhaps it is a risk mitigation move). Unfortunately our IPO market has been very weak (global trend) and with such weak sentiments, it will require very strong hands to buck the recent downtrend... good luck and let's see if Alan is the Hercules the market has been waiting for! 




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