Noodle maker Leong Guan’s shares open 8.7% up from IPO price on Catalist debut

[SINGAPORE] Shares of food manufacturing and distribution company Leong Guan Holdings opened 8.7 per cent up from its initial public offer price (IPO) on Thursday (Dec 11) on its trading debut on the Catalist board.

Trading opened at S$0.25 per share, up S$0.02 from the S$0.23 IPO price.

Leong Guan on Wednesday (Dec 10) said its placement of about 20.7 million shares had brought in S$4.75 million. Net proceeds raised from the issue of new shares will amount to about S$2.15 million, after deducting the estimated expenses of about S$1.6 million.

The company plans to use S$300,000 for the expansion of its export markets and product range, while S$700,000 will be used to improve its manufacturing facilities.

Some S$600,000 will be directed towards acquisitions, joint ventures and strategic alliances for business expansion, and S$549,000 will be set aside for general working capital.

The group intends to distribute a minimum of 80 per cent of the 2025 financial year net profit and a minimum of 35 per cent of the 2026 net profit as dividends to shareholders. 

About 16.3 million new shares and 4.35 million vendor shares were placed, and the group’s share capital is now expected to be about 101.2 million shares valued at about S$4.45 million.

Its market capitalisation is about S$24.8 million after the IPO, for which Zico Capital is serving as the sponsor, issue manager and placement agent. 

Leong Guan’s prospectus noted that it has more than 22 years of experience in the food industry, specialising in manufacturing fresh noodle and soya bean-based beancurd products.

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It also sells a wide range of food-related products and supplies food products to about 2,000 customers in local and overseas markets.