SINGAPORE – Local karaoke and live show operator Goodwill Entertainment has completed its registration to list on the Catalist board of the Singapore Exchange (SGX) with its initial public offering (IPO) 1½ times oversubscribed, the company said on Oct 30.
Goodwill, which operates several entertainment venues including dance halls and family-friendly karaoke lounges, is offering 60 million shares at 20 cents each, comprising 42.5 million new shares and 17.5 million vendor shares, with none available for the public.
The company seeks to raise $12 million in gross proceeds from the sale of the new and vendor shares, and net proceeds of $9.8 million.
However, the company will not receive the proceeds from the sale of the vendor shares, which were sold by Mengkim, a controlling shareholder of the company.
Mengkim is a company incorporated in 2005. Its shareholders are Mr Thang Teck Jong, Goodwill Entertainment’s board vice-chairman and non-executive director, and his wife Kong Ling Ting.
Goodwill will receive just $6.45 million in net proceeds, which it will use to expand its business by opening more outlets in Singapore and exploring regional markets in South-east Asia, starting with Malaysia, its founder and chief executive Flint Lu told The Straits Times on Nov 1.
“In addition to karaoke lounges with food and beverage offerings, we are exploring complementary verticals such as developing and manufacturing house craft beers and establishing a food manufacturing plant,” Mr Lu said.
“This will reduce reliance on third-party suppliers and produce a range of food products tailored to the specific needs of our outlets, generating significant additional revenue and profit for the company.”
Mr Lu also said that the firm will be investing in artificial intelligence (AI) technology.
“The plan is for the AI system to simplify reservations, track memberships and past transactions, accumulate membership points,
