Showing posts with label Overseas restaurant. Show all posts
Showing posts with label Overseas restaurant. Show all posts

Friday 2 April 2010

Oversea targets RM13m from ACE listing for growth



Oversea targets RM13m from ACE listing for growth



Published: 2010/02/23



Oversea Enterprise Bhd, operator of the Oversea restaurant chain, plans to raise RM13.1 million from an initial public offering (IPO) to expand its business and partly settle existing debt.

The group is aiming to list its shares on the ACE Market of Bursa Malaysia by the end of next month.

The group started operations with its first "Restoran Oversea" in Jalan Imbi, Kuala Lumpur, in 1977. To date, it has seven outlets in the country: five in the Klang Valley and two in Ipoh, Perak.

The IPO involves a public issue of 56.9 million new shares priced at 23 sen apiece. There will also be an offer for sale of 9.5 million existing shares at the same price.

Funds raised from the offer for sale will go towards the seller, typically the controlling shareholder, and not the company. In this case, the seller would make about RM2.2 million.

"We believe that these strategies would go a long way in not only strengthening our brand equity but also building up a new generation of diners who are familiar with, and wholeheartedly believe in, the high quality of our Oversea brand," group managing director Yu Soo Chye said at the underwriting agreement signing ceremony in Kuala Lumpur yesterday.

About 70 per cent of the IPO funds will be used for expansion and working capital. The rest will be used to pay borrowings and listing expenses.

The group plans to open two casual and contemporary dining concept outlets targeting younger customers.

"We plan to open the two casual and contemporary Chinese restaurants in the near future - one in Ipoh this year and the other in Jakarta, Indonesia, by next year - as well as one cafe in the Klang Valley this year," Yu said.

Besides the restaurant business, Oversea also makes mooncakes and baked products like egg rolls, oriental muffins and wedding biscuits.

The group almost doubled its net profit to RM6 million in 2008 on revenue of RM62.8 million. In 2007, its revenue was RM60.3 million.

Oversea has hired OSK Investment Bank Bhd to manage its IPO.


http://www.btimes.com.my/Current_News/BTIMES/articles/jrover-2/Article/

Comment:  Restaurant business has little or no durable competitive advantage over their rivals.