SINGAPORE – The initial public offering of Japanese food and beverage (F&B) operator Food Innovators Holdings (FIH) closed with 14 million of its new shares fully subscribed at $0.22 apiece.
FIH said on Oct 15 that there were 264 valid applications for a total of 6.3 million public shares, with application monies received amounting to around $1.4 million. Since there were one million shares available to the public for subscription, this translates to a subscription rate of 6.3 times.
All 13 million shares in the private placement tranche were also fully allotted, including 47,000 shares to FIH chief executive Kubota Yasuaki.
In total, the private placement and public tranches had a subscription rate of 1.4 times.
Gross proceeds of approximately $3.1 million were raised.
The company had earlier said that of the gross proceeds raised, around 16.2 per cent will go towards funding the expansion of FIH’s food retail business outside Japan.
Another 16.2 per cent of gross proceeds will go towards funding acquisitions of new Japanese food brands, as part of the group’s expansion and diversification efforts in Singapore and Malaysia. This amount also includes the acquisition of operating rights for more themed restaurants based on popular anime characters in Japan.
The remaining 3.7 per cent of gross proceeds will go towards general working capital, the company said.
In a press statement on Oct 15, Mr Yasuaki said: “We are delighted by the confidence showcased by our investors to make this a successful IPO, and we are determined to continue delivering a strong performance through our ongoing strategic initiatives.”
“The group is well-positioned to capitalise on key market trends by scaling up our food retail business both domestically and internationally, while driving sustainable expansion and enhancing value for our stakeholders.”
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