Singapore: Pre-school chain MindChamps IPO targets $36.3m, to expand globally

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MindChamps PreSchool Limited (MindChamps), which claims to be the largest operator and franchisor of premium range pre-school centres in Singapore, is conducting a public float of its business on the Mainboard of the Singapore Exchange (SGX).

The initial public offer (IPO) will see it raise gross IPO proceeds of $49.3 million ($36.3 million) and net proceeds of S$47.6 million ($35.1 million) at an estimated valuation of S$200 million ($147.4 million)

Its shares will commence trading on the SGX on November 24.

In a statement, David Chiem Phu An, Founder, Executive Chairman and Chief Executive Officer of MindChamps said, a public listing on the SGX-ST will allow the company to expand from Singapore to the rest of the world.

MindChamps operates and manages its business primarily as three business segments: the provision of premium child care, education and learning-related services for preschool children through its company-owned-company-operated (COCO) centres; franchising of its childcare and education services and classes to franchisee-owned- franchisee-operated centres; and commercial schools offering higher education programmes targeting adults conducted by its Champion Mindset Academy.

Incorporated in Singapore in July 2008, its preschool child care centres charge each student over S$1,700 per month for a five-day week or 5.5-day week full-day programme in Singapore.

The offer of 30,4449,600 shares consists of an international placement of 28,449,600 offering shares to investors, including institutional and other investors in Singapore, and an offering of 2 million shared by way of a public offer in Singapore. This is expected to raise S$25.27 million ($18.6 million).

Each offer share is priced at S$0.83 and comprises 28,377,031 new shares offered by MindChamps and 2,072,569 existing shares offered by MindChamps’ shareholder, MindChamps Holdings Pte. Limited. This is subject to an over-allotment option.

CFCG Investment Partners International (Singapore), affiliate funds of Hillhouse Capital – (comprising Gaoling Fund, L.P. and YHG Investment, L.P., and Target Asset Management have come in as cornerstone investors. They will subscribe for an aggregate of 28,930,800 shares at the offer price, representing an 11.97 per cent of the enlarged share capital of the firm as at the listing date.

Post-listing, MIndChamps plans to increase its product offering by expanding its infant care services, launching Actors Centre Kids, a series of classes aimed at helping children become confident, creative and collaborative through theatre, and in increasing its research into improving the nutritional value of its meals to enhance overall experience in its preschool centres.

“As part of our growth strategy, we plan to leverage our existing franchise model to establish partnerships in new overseas markets such as China, US, the UK, Malaysia, South Korea and Vietnam, as well as increase the number of FOFO centres in existing markets such as Singapore, Australia and the Philippines. We will seek suitable local partners with strong track record and preschool market experience to become our brand franchisees in these markets.”

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