Singapore Chilli-Crab IPO Attracts Temasek Arm, Osim Founder

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(Bloomberg) -- Jumbo Group Ltd., which runs chilli-crab restaurants in Singapore, has attracted an arm of state investment company Temasek Holdings Pte and the founder of Asia’s biggest massage-chair maker as cornerstone investors for its S$40 million ($29 million) initial public offering.

Heliconia Capital Management Pte, a unit of the Singapore state investment company, agreed to invest S$10 million, while Osim International Ltd. chairman Ron Sim will buy S$8 million of stock, according to a Singapore Exchange filing Wednesday. Jumbo will offer another 88.2 million shares to institutions and individual investors at 25 Singapore cents apiece, the filing shows.

The offering would be the biggest initial share sale this year in Singapore, where nine offerings have raised just $117 million, data compiled by Bloomberg show. Jumbo, known for its chilli and black pepper crabs, operates restaurants serving cuisines including seafood, pork rib soup and ramen noodles to more than 6,000 customers daily, according to its website.

“Both Heliconia and Ron are looking for home-grown entrepreneurs that ride on the consumer and middle-class growth story outside of Singapore,” Linus Lim, co-chief investment officer at Phillip Capital Management Ltd. in Singapore, said Wednesday. “Jumbo is a readily understood business with well- loved brands, with chilli crabs that sell beyond our shores.”



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The restaurant operator will open at least four more outlets in China and Singapore within the next two years, according to the filing. It intends to pay out at least 30 percent of net income as dividends for the 2016 and 2017 financial years, it said.

“Overall, market sentiment has cash sitting on the sidelines,” Phillip Capital’s Lim said. “That normally means that investors will start to buy growth at a reasonable price.”

Heliconia is an investment firm focused on growth-oriented Singapore companies. It owns stakes in Razer Inc., a maker of computer hardware for video-game enthusiasts, and Rigel Technology (Singapore) Pte, which sells environmentally-friendly toilets. Osim has invested in companies including tea retailer TWG Tea Co. and technology provider Trek2000 International Ltd.

Jumbo plans to start trading Nov. 9. United Overseas Bank Ltd. is the sponsor and issue manager of the IPO.



To contact the reporter on this story: Joyce Koh in Singapore at [email protected] To contact the editors responsible for this story: Ben Scent at [email protected] Darren Boey, Daryl Loo


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