School operator KinderWorld eyes SGX Mainboard listing

Source: KinderWorld International Group (KIG) Limited website

KinderWorld International Group Ltd (KIG) – one of the largest owner-operator of international schools in Vietnam – has lodged its preliminary prospectus seeking a public listing on the Singapore Exchange (SGX) Mainboard.

The pricing, timing, and proceeds to be raised from the proposed listing have not been finalised yet.

KIG plans to use the proceeds from the proposed IPO offering to fund its expansion in Vietnam, and new geographical markets. KIG also plans to use the proceeds for working capital purposes.

Founded in 1986, KIG provides education services from preschool to high school through three campuses including KinderWorld International Kindergarten, Singapore International School and Singapore Vietnam International School.

The Vietnam school business now manages and operates 15 campuses across eight cities, namely Hanoi, Ha Long, Danang, Nha Trang, Binh Duong, Vung Tau, Can Tho and Ho Chi Minh City.

KIG’s nearest competitor is Mindchamps Pre School Limited which was listed in November 2017 at S$0.83 per share and it raised S$46.20 million ($34.13 million) on the SGX. Despite making a debut 1.2 per cent above the IPO price at S$0.84, the stock price has since fallen by approximately 25.30 per cent to close at S$0.62 on June 27, 2019.

In the year ending June 30, 2018 (FY 2018), KIG generated total revenues of S$43.34 million ($32.02 million), up 13.02 per cent year-over-year (YoY) from S$38.34 million ($28.33 million) in FY 2017, while total profits rose 36.07 per cent YoY to S$9.53 million ($7.04 million) in FY 2018.

DBS Bank Ltd (DBS) has been appointed as the sole issue manager and global co-ordinator for the public offering.

Maybank Kim Eng Securities Pte Ltd together with DBS are appointed as the joint bookrunners and underwriters. Kingsmead Asset Management Pte Ltd (Kingsmead), and certain undisclosed clients of DBS Vickers Securities (Singapore) Pte Ltd (DBS Vickers) have entered into a cornerstone subscription agreement with KIG to subscribe up to 30.77 million shares.