The food manufacturing and distribution company specialises in fresh noodle and soya bean-based beancurd products
[SINGAPORE] Food manufacturing and distribution company Leong Guan on Tuesday (Sep 30) lodged its preliminary document for a listing on the Catalist board of the Singapore Exchange (SGX).
The company has more than 22 years of experience in the food industry and specialises in manufacturing fresh noodle and soya bean-based beancurd products. It also trades a wide range of food-related products and supplies food products to around 2,000 customers in local and overseas markets.
Its local customers include brick and mortar retailers such as supermarkets and minimarts, alongside e-commerce platforms including Shopee, FairPrice Online, Grab and foodpanda, and its own platform The Picky Grocer.
The placement will comprise new shares and vendor shares, which will be available to retail and institutional investors in Singapore, the preliminary document said.
Net proceeds from the placement may be used to expand the company’s export markets and product range, and enhance its manufacturing facilities. They may also be used for acquisitions, joint ventures and strategic alliances to expand the business and for general working capital needs.
While the company does not have a fixed dividend policy, its board intends to recommend and distribute dividends of at least 80 per cent of its net profit for the financial year ending Dec 31, 2025, and of no less than 35 per cent of its net profit for the financial year ending December 2026.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In terms of future plans, the company intends to expand its overseas customer base by growing its exports to distributors and brand owners, and increasing its presence across Asia, Australia, North America, the Middle East and Europe.
It intends to obtain food import certifications necessary for growth in these markets and is seeking internationally recognised certifications, such as the FSSC 22000, which recognises robust and effective food safety management systems.
It also plans to enhance its food offerings by broadening its product range through a vertical expansion strategy, by offering products tailored to its customers’ preferences and lifestyles.
SEE ALSO
This includes developing ready-to-eat meals, widening the range of flavours and recipes in its offerings and developing snacks that may yield higher margins than its existing products.
Its plans also include developing foods catered to customers’ health requirements or the needs of different age groups, as well as partnering nutritionists, chefs or other food professionals to create products, such as reduced-carbohydrate ramen or low-glycemic index foods, that are healthy and appealing to customers.
