Jumbo Group synonymous with Singapore favourite Chili Crabs has launched their IPO. You can read all about the IPO in the links below:
- Seafood restaurant owner Jumbo Group launches IPO
- Jumbo Group’s S$40m IPO in the pot
- Singapore chili-crab IPO said to draw Temasek arm, Osim boss
- Jumbo Group IPO prospectus
Without going into their financials, this is what I have gathered from the reports:
sells about 1.6 tonnes of crabs every day across Singapore and Shanghai, he noted, adding that Singapore accounts for the bulk of that at 1.2 to 1.4 tonnes daily.
That is a lot of crabs in one day. I have not eaten Jumbo crabs for a very long time. If my memory serves me correctly, a kilo of crabs cost about $50 and that works out to $70K a day or $25.55M a year. This is a conservative estimate because from my friends who entertain foreign guests in Jumbo, their prices are much higher. $25.55M may seem impressive but their actual profit margin might be low.
If Jumbo group wants to earn more, they will have to expand out of Singapore because I do not think Singaporeans are going to consume more crabs and competition for the best Chili crab is intense. China seems to be their target market but while Durians were a success, I wonder if the locals will find our Chili and Pepper crabs to their liking. Hairy Crabs are big there but I personally do not enjoy them. Give me my Sri Lankan crab!
Jumbo Group Ltd., which runs chili-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
While a state company adds some sort of ‘confidence’, season investors will know that a state linked company does not guarantee results. No prizes for guessing who is Asia’s biggest massage-chair.
Heliconia is an investment firm focused on growth-oriented Singapore companies. It owns stakes in Razer, a maker of computer hardware for video-game enthusiasts, and Rigel Technology (Singapore), which sells environmentally-friendly toilets. Osim has invested in companies including tea retailer TWG Tea and technology provider Trek2000 International.
I am racking my brains to find a synergy among the various businesses. The best I can think of is having Chili Crabs served with the finest TWG tea. Since every restaurant has a toilet, your waste will be recycled and put to good use in their environmentally-friendly toilet.
Jumbo is a readily understood business with well-loved brands, with chili crabs that sell beyond our shores.
unfazed by competition from the growing popularity of new restaurants that serve up seafood boils, saying that Jumbo’s chili crabs were seen as a traditional Singapore dish rather than a fad.
No doubt Jumbo has a strong brand but well-loved and traditional is subjective. Unless you are a Jumbo supporter, many foodies will disagree. No-signboard, Uncle Leong, Long Beach, Melben, Ubin Seafood, Still Road and other Zi Char restaurants serve excellent Chili Crabs too.
Will I subscribe to the IPO?
Nope but if Melben Seafood decides to IPO, I will subscribe for it. This is a matter of taste buds and nothing to do with their financials. After all, I am fan of their Creamy Butter crab.
If you are interested to learn more about Jumbo Group’s financials, head over to my good friend and fellow blogger LP post – Jumbo Group IPO – Good buy or Goodbye?