Koufu raises $415.9m from IPO

Its public offer of 6.33 million shares was 17 times subscribed.

Singapore-grown food & beverage (F&B) manager and operator Koufu Group said it received strong interest for its initial public offering (IPO) in Singapore. It raised a total of $415.9m from its public and placement shares combined.

According to an announcement, its public offer of 6.33 million shares was 17 times subscribed. There were applications for 107.67 million public offer shares, with application monies received amounting to approximately $67.8m.

Moreover, of the 85.16 million placement shares available under the placement, indications of interest were received for approximately 552.5 million placement shares, with a total value of approximately $348.1m. There were 5.51 million reserved shares allocated to Koufu’s directors, management, employees, and business associates.

At the same time, Maxi-Harvest Group, One Hill Investments, and Qilin Asset Management have subscribed for an aggregate of 21 million cornerstone shares that translates to net proceeds of $70.5m, of which approximately $43m will be due to Koufu.

Based on the offering price of 63 cents, the post-offering market capitalisation of Koufu is expected to be approximately $349.8m.

DBS Bank Ltd. is the sole issue manager, global coordinator, bookrunner, and underwriter of the IPO. Shares are expected to start trading at 9 a.m. on 18 July 2018 under the stock code “VL6.”

In its prospectus, Koufu has outlined a roadmap for organic and inorganic growth, including the expansion of its network of F&B Outlets so as to grow its F&B retail business in Singapore and overseas; establishing a proposed integrated facility to drive and support growth; exploring joint ventures and acquisitions in complementary business segments and markets; and expanding the provision of online food ordering and delivery services.