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Independent Singapore
2 days ago
- Business
- Independent Singapore
Lum Chang Creations Catalist listing to raise S$12.3m
SINGAPORE: Property restoration specialist Lum Chang Creations is preparing to launch its initial public offering (IPO) on Singapore's Catalist board. The company aims to raise S$12.3 million to support its expansion across Southeast Asia. It will offer 49 million shares at 25 cents each. One million shares will be available to public investors in Singapore, and 48 million will be offered through private placement. After the IPO, the company's market value will reach S$78.75 million. Chief executive Lim Thiam Hooi plans to expand the company's footprint in Malaysia and Indonesia. He highlighted the company's goal of finding merger and acquisition opportunities. In a public statement, he explained, 'This IPO is just the first step,' Lim noted. He also plans to explore future financing possibilities via placements, as well as a mainboard listing. Lum Chang Creations is a spin-off from Lum Chang Holdings. Also known as a spin-out, it is a corporate action when a company splits off a section as a second business. See also Elite Commercial REIT secures up to S$229.73M refinancing fund Lum Chang Creations focuses on the conservation and restoration of interior spaces and has built its reputation through notable restoration projects, such as work at St James Power Station, the Red Cross House, and the National Museum building. Lum Chang Creation's main market for urban revitalisation, interior fit-out works, and addition and alteration (A&A) works in Singapore and Southeast Asia is poised for significant growth. This is due to rapid urbanisation and sustainable development, according to industry estimates. In Singapore, the combined market for these sectors is projected to reach S$11.7 billion to S$18.4 billion in 2025. Urban revitalisation, fueled by projects like the Greater Southern Waterfront and Marina Bay Sands' expansion, accounts for S$5 billion to S$10 billion. The interior fit-out market, driven by demand for luxury offices and retail spaces, is estimated at S$4.7 billion to S$5.4 billion, while A&A works, including HDB flat upgrades and commercial retrofits, contribute S$2 billion to S$3 billion. Singapore's Urban Redevelopment Authority (URA) and sustainable design trends underpin this growth, with construction demand expected to hit S$47 billion to S$53 billion, per the Building and Construction Authority (BCA). Company financial records show strong growth. In 1H 2025, earnings increased by 61.6% to S$5.3 million. Revenue also went up by 16% to S$40.8 million. Market researcher Converging Knowledge estimates the company has between 14.4% and 17% market share in property revitalisation. As of May 31, Lum Chang Creations has an order backlog of S$122.8 million, positioning itself well in a strong market. The urban revitalisation and construction sector in Southeast Asia is projected to reach as much as S$395 billion, fuelled by fast urbanisation and sustainable development efforts. Post-IPO ownership will break down as follows: Lum Chang Holdings: 71.1% CEO Lim Thiam Hooi: 13.3% Public investors: 15.6% The company plans to distribute 30% of its profits as dividends for the 2025 and 2026 financial years. Lim expects 2026 to be particularly strong as ongoing projects are completed and new orders come in. The company currently accounts for only 50% of a project's value until it is finished, allowing for better financial flexibility. With a pricing strategy at the lower end of its expected range, the IPO offers an appealing entry for investors interested in Singapore's urban restoration and development sector. The company's strategy targets both public and private sector projects and focuses on opportunities in emerging markets. 'If we succeed, our capital base will grow. This will allow us to expand further,' Lim said.
Straits Times
6 days ago
- Business
- Straits Times
Lum Chang Creations launches Catalist IPO, CEO says mainboard is next
Sign up now: Get ST's newsletters delivered to your inbox Lum Chang Creations CEO Lim Thiam Hooi is confident the company's IPO will perform well on Catalist. SINGAPORE – A property restoration firm is launching an initial public offering (IPO) here to raise around $12.3 million to fund expansion. Lum Chang Creations, which will trade on the Catalist board, is offering 49 million shares at 25 cents apiece, its prospectus noted on July 9. The IPO will comprise one million new shares available to the public in Singapore, and 48 million offered via placement – 34 million new shares and 14 million existing ones. Lum Chang Creations, a spin-off from mainboard-listed real estate developer Lum Chang Holdings, specialises in conservation, restoration interior fit-outs and addition sand alterations. It will be looking for merger and acquisition opportunities and has already identified potential targets, said chief executive Lim Thiam Hooi. It also has plans to expand into Malaysia and Indonesia. Based on the IPO price and a post-listing share base of 315 million, the company is expected to debut on Catalist with a market capitalisation of $78.75 million. Lum Chang Holdings will hold a 71.1 per cent stake in Lum Chang Creations after the IPO, while Mr Lim will own around 13.3 per cent. The public will account for the remaining 15.6 per cent. Top stories Swipe. Select. Stay informed. Business S'pore to launch new grant for companies, expand support for workers amid US tariff uncertainties Singapore PAP appoints new heads of backbench parliamentary committees Singapore Singaporean fugitive charged over alleged drug trafficking, faces death penalty if convicted World 'Do some homework': 6 key exchanges between US Senator Duckworth and S'pore envoy nominee Sinha Sport No pain, no gain for Singapore's water polo teams at the world championships Singapore New regional centre for sustainable aviation in Asia-Pacific launched in Singapore Multimedia 60 objects to mark SG60: Which is your favourite? Business Fresh grads should 'stay calm' in job search; uptick in hiring seen: Tan See Leng Mr Lim said the firm is listing at a time when demand for real estate revitalisation and preservation work is on the rise, backed by public and private sector jobs. The company's track record includes work at St James Power Station and the Red Cross House. It is also involved in projects such as restoring the facade of the National Museum building and had a order backlog worth $122.8 million as of May 31. Its unaudited financials for the first six months of 2025 note that Lum Chang Creations increased earnings by 61.6 per cent to $5.3 million compared with the same period in 2024, while revenue rose 16 per cent to $40.8 million. Projections from market researcher Converging Knowledge indicate that Lum Chang Creations has a market share of between 14.4 per cent and 17 per cent for property revitalisation work in Singapore. Mr Lim said 2026 is expected to be a stronger year for the company, as more of its ongoing projects are completed and new orders are secured. The company recognises only 50 per cent of a project's value until it is finished, he added. The company intends to declare dividends amounting to 30 per cent of profits for the 2025 and 2026 financial years. Despite its promising potential, Mr Lim said Lum Chang Creations' IPO is priced at the lower end of its expected range and at about five to six times its earnings. 'This IPO is just the first step. We are not finished here,' he added. 'After we show people that we can make money and distribute profits to shareholders, six to eight months down the road we can do more placements. 'If successful, our capital base will get bigger, and we can move further. We can go to the mainboard.' Lum Chang Creations shares are expected to begin trading on July 21.
Straits Times
24-06-2025
- Business
- Straits Times
Construction player Lum Chang's interior design firm files to list in Catalist IPO
The move comes after its spin-off from mainboard-listed Lum Chang Holdings was completed, following an internal restructuring exercise on June 19. PHOTO: LIANHE ZAOBAO SINGAPORE - Interior fit-out firm Lum Chang Creations has filed a preliminary prospectus for a listing on the Singapore Exchange's (SGX) Catalist board, the second firm in a week to have lodged documents for a listing on the local bourse. The move comes after its spin-off from mainboard-listed Lum Chang Holdings was completed, following an internal restructuring exercise on June 19, the construction and property group said in a bourse filing on June 23. Lum Chang Creations specialises in urban revitalisation projects, with a focus on conservation, restoration, interior fit-out and addition and alteration works. It also provides aftercare services for certain retail projects and manufactures wood furniture and fixtures for retail customers. The firm said it is planning to raise funds to grow its regional footprint, expand its portfolio of interior fit-out and addition and alteration projects in the high-end residential segment, explore acquisitions and joint ventures and boost working capital. Lum Chang Holdings holds 224 million shares in the company, or 80 per cent of its issued share capital, while Lum Chang Creations managing director Lim Thiam Hooi owns the remaining 56 million shares. Pricing and final share allocation details for the IPO have not been disclosed and will be set out in the final offer document. RHT Capital is the sponsor and issue manager, while CGS International Securities Singapore is the underwriter and placement agent for the offering. Lum Chang Creations' net profit rose 61.6 per cent to $5.3 million for the six months ending June 2025, up from $3.3 million a year earlier, on the back of higher-margin contributions from conservation and restoration projects. The firm's revenue for the period grew 16 per cent to $40.8 million, supported by ongoing projects secured in or before the 2024 financial year, which contributed about $21.6 million. A new project secured in the first half of 2025 added another $5.8 million. Shares of Lum Chang Holdings opened 8.8 per cent higher at $0.37 on June 24. If its IPO is successful, Lum Chang Creations would be the second company to list on Catalist. On June 20, HR software firm Info-Tech Systems applied for a mainboard listing. In April, auto-group Vin's Holdings went public on Catalist, while another company, candy maker YLF Group Marketing, halted its plans to list less than three weeks after it lodged its prospectus. Join ST's Telegram channel and get the latest breaking news delivered to you.
