Singapore-based coffee shop operator Kimly Limited (Kimly) has commenced trading on the SGX Catalist, the secondary board of the Singapore bourse, under the stock code 1D0, opening trade at S$0.55 on Monday.
The firm generated gross proceeds of S$43.5 million ($31.1 million) from its initial public offer (IPO). Heliconica Capital Management, a unit of Temasek Holdings, was a cornerstone investor in its pre-IPO round.
Kimly operates one of the largest chains of coffee shops in the city-state with a network of 64 shops, industrial canteens and food courts under management. It has 121 food stalls – selling dim sum, seafood “zi char”, mixed vegetable rice, teochew porridge and more – across the heartlands of Singapore.
Kimly’s business, with an operational record of 26 years, is focused on outlet management and food retail. Recently, it has ventured into online food ordering and delivery services. According to Kimly, the IPO proceeds will finance acquisitions, joint ventures (JVs) and general business expansion, including the opening of new food outlets.
The listing comes amid strong growth in the region’s consumer sector as the middle class in surrounding countries growth in size and affluence, with greater levels of disposable income.
Speaking on its listing, Vincent Chia, Kimly Ltd Executive Director, said, “With our listing, we now reach out to an even bigger market who can partake in the flavours of Kimly not only as customers but also as our shareholders. We are heartened by the reception that we have received for our IPO and look forward to further enhance and grow our operations to reward our shareholders.”
The consumer sector, which covers sub-sectors such as retail, food & beverage and agri-commodities, is one of the biggest sectors represented by SGX-listed companies.
With a market capitalisation of about $288 million, the listing of Kimly brings the total number of consumer companies listed on SGX to more than 150, with a combined market capitalisation of about $160 billion, and the total number of companies listed on Catalist to 190, with a combined market capitalisation of more than S$11 billion.