Yuba Hut would be making its IPO on the Gem Board of HKEX on 18 May under the company named SG Food Holdings (HKEX:8496). The company includes brand names of Yuba Hut, Proofer, 300 BC Bakery and Laura Restaurant. Proofer is the brand that generates the most revenue for the company.

Basic Details as follows

Net Profit in 2019: 1.4m SGD

Adjusted Profit (excluding listing expense): 2.7m SGD

Listing Price: 0.9 HKD

Shares Issued: 240,000,000

PE: 15.1 (excluding listen expense PE)

The prospectus can be found here.

What I Dislike about the listing.

1)      The net proceeds from the listing would be roughly 27m HKD but the listing expense if roughly 30.1m HKD. It kind of makes no sense listing since most of its gross proceeds is used to pay its listing.

2)      Pre-IPO investors are not prevented from from selling their shares at opening. Pre-IPO investors got in at 0.56 Hkd per share and hence its way cheaper than the listing price.

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