Jumbo IPO: Insider news

Jes 6 Comments

This is the one time I have got more news than some of you and even though I am one of the latest to write about this... I am glad I have information that many are asking.

Being in the sales line, everyone of us are familiar with Jumbo because we bring tourist and guests, customers and overseas colleagues there all the time. I can tell you I sometimes am sick of Jumbo food! The location at East Coast Park is one of the most popular with the sea view and a good night's stroll after dinner. Reservation is definitely needed or you will be turned away. Their chili crab has remained consistently good, as well as the branch in Singapore Seafood Paradise. Some of the other must-order dishes include:
1) Crispy baby squid
2) Scallop with yam rings
3) Bamboo clams
4) Deep fried you tiao
5) Mee goreng... shocking right but it really packs a punch!

Ok, this is not a food review but I also like Yoshimaru ramen and Jpot. Ng Ah Sio BKT not so much because I personally prefer Outram Road Ah Hua BKT. Think I will try Chui Huay Lim soon.

For the financials, courtesy of B and viewing prospectus here:
At PE: 9.4
With revenue and profits increasing every year
EBIT margin: 13.2%
They definitely look better than other food holdings in SGX.

So why do they need to go IPO?
From someone close to the source, in fact, they would have chosen not to so that they do not have to do so much accounting to the board and it's easier to handle being a family business. However, the Singapore and China government insisted that they list their company so as to gain more tax rebates for expansion and because they are planning more stores in China, it will definitely facilitate matters. No details were elaborated. It was said that when your revenue exceed 100 million, like what they did in 2014, it will be insisted that they go public listing.

Interesting information huh?

If you ask me, I would think there is enormous room to grow because all tourists think of Chili crab in Singapore before any other food. Why stop at just expansion in China and not Taiwan, Hongkong, Japan and others? If they could succeed in China, then it might just open up a huge wave of opportunities.

For emotional and financial reasons, I think it will be a hot buy. That being said, with only 2 million share for the public, I am not sure if I am just raising your hopes and mine up for disappointment.

Jes

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6 comments:

  1. I was thinking they ipoed 37 million to pay themselves 51 million in dividends .

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    1. Hi Sgdividends,

      It seems like they should be profiting from the IPO but if they are confident of their expansion then most likely they will keep the stocks long term to earn more in the future. Investors can still earn together haha...

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  2. Hahaha how true! Tick tick tick for #1,2,3 and 5, and also the ECP branch most of the time. I am actually trying to steer my guests to other options...

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    1. Hi CP,

      Are you sick of Jumbo yet? Haha why you don't like their you tiao ah? If your other options are peranakan or bah kut teh, then high chance we will meet each other in restaurants in the future... hahaha.

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  3. Yes I am! Ok I shall order that the next time...BKT is a favorite of mine, SF at Clarke Quay. Peranakan so far I have brought my supplier to Nyonya & Baba at Vivo, he liked it and even kept the buah keluak shell as a souvenier -.-

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    Replies
    1. Hi CP,

      Ooo.. I have not tried Song fa because of the long queue. I normally go Ya hua Bkt at Keppel or Old street if it's convenient. For peranakan, you should try Peramakan at Keppel club... it tastes way better. You eat the same food a few more years you will know what is sian man! :S

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