Food Junction Holdings Ltd, which runs 15 food courts in Singaporeand two in Malaysia, said on Friday it was offering 20 million newshares at S$0.20 each in an initial public offering (IPO).
Singapore-based Food Junction, which is seeking a listing on thesecond board, said the whole issue would be placed out to investorsas well as business associates and employees. The offer is priced at about 8.3 times the company's historical netprice/earnings ratio.
Food Junction said net proceeds of about S$2.85 million ($1.57million) would be used to expand its business. For the 11 months ended in August, the group recorded turnover ofS$35.4 million and profit of S$2.9 million, an increase of 35percent and 39 respectively over the previous comparableperiod.
Keppel TatLee Bank, a unit of OCBC Bank OCBC.SI, is leadmanaging the issue, which closes on November 16. Trading in theshares is due to start on November 19.
Food Junction's IPO is only the third in Singapore since theSeptember 11 attacks on the United States after offerings byinformation technology infrastructure company Lantrovision (S) Ltdand CapitaLand's CATL.SI SingMall property trust.