Jumbo Group Limited - IPO Factsheet

Business
Jumbo Group Limited has a total of 14 food and beverage (“F&B”) outlets in Singapore and two F&B outlets in the People’s Republic of China (the “PRC”), under five restaurant brands.

Jumbo manages two F&B outlets in Singapore that are effectively owned by its associated companies. Through its associated companies, Jumbo holds investments in one, and are paid licensing fees in relation to four F&B outlets located in Japan.

Jumbo also engages in retail sales of its signature dishes' packaged sauces and spice mixes through its outlets, selected stores, supermarkets, travel agencies and online via the Jumbo eShop, and provides catering services in Singapore.

Competitive Strengths

Increased efficiency with information technology systems
Jumbo continually implements and upgrades various IT systems for its operations to increase efficiency in monitoring its business, and to control and analyse various aspects of its operations.

One of the leading F&B establishments in Singapore
Jumbo has established a reputation for offering quality food and service, F&B brands are widely recognised by consumers in the various markets.

Large customer base
Jumbo leverages on its established brand loyalty with customers to further increase market share in the F&B industry.

Centralised processes ensure quality control and productivity
Centralising of the food production processes enable Jumbo to maintain high quality of dishes, increase productivity and improve food preparation process.

 ISSUE STATISTICS
Sponsor, Issue Manager, Joint Underwriters and Placement Agents :
United Overseas Bank Limited, UOB Kay Hian Private Limited
Prospectus :
Click here
Offering Price :
S$0.25
 Offering Size:
- 88.2m New Shares comprising:

(a) 86.2m by way of placement

(b) 2.0m by way of public offerings
Market Capitalisation (Post IPO) :
S$160.3m
PER (Post IPO) :
13.9x (Based on 2014A)
Intended Dividend Payout :
The Group currently does not have a fixed dividend policy
Gross Proceeds :
S$40.1m
Use of proceeds :
- (a) $12m, 29.9% to Establish new outlets and refurbish existing outlets

- (b) $11.5m,  28.7% for Acquire new premises, equipment and machinery

- (c) $14.0m,  34.9% for General working capital

- (d) $37.5m - Net proceeds

- (e) $2.6m,  6.5% for IPO expenses
 Indicative Timeline :
 Public Offer Close :
5 November 2015, Thursday, 12 noon
 Expected Listing:
9 November 2015, Monday 9 a.m (Catalist)

Business Strategies and Outlook

Establishing new outlets and refurbishing existing outlets
Jumbo can leverage on the strength of various restaurant brands to further expand its network of outlets, and to refurbish and renovate its existing outlets.

Acquiring new premises, equipment and machinery
Jumbo intends to acquire or lease larger premises, equipment and machinery to cater for future growth and development; enhance communication and increase operational efficiency.

Expansion of business
Jumbo may expand its business through acquisitions, joint ventures or strategic alliances to strengthen market position, and add value to existing business.

Positive outlook
Jumbo believes that the outlook is expected to remain positive, in view of

a) GDP and population growth in Singapore;

b) An increase in consumer affluence and willingness to spend on food;

c) Growth in Singapore’s tourism and hospitality industry; and

d) Opportunities in Asia, with consumerism on the rise, driven by large domestic markets and growing middle-income group. (Read Report)

Read Related Report
1) Jumbo Group Ltd - Chili Crab has started taking orders by Phillip Securities Research, published on 4 November 2015

Source : DBS Group Research

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