Bangkok--9 Feb--MT Multimedia
SEC has begun the day one count on the filing of Mudman (MM), a leading operator of global food and lifestyle brands, which seeks to make an IPO of 210,980,750 shares and expects to list on the MAI by Q2 of this year. The management expressed confidence in the great potential of MM's F&B restaurant chain business, which is run using franchised global brands (i.e. Dunkin' Donuts, Au Bon Pain and Baskin Robbins) and MM's own brands (i.e. Greyhound Cafe and M-Kitchen), and the company's lifestyle business, which involves marketing of 'Greyhound' lifestyle products (e.g. clothes, personal accessories, etc.) MM has an ambition for long-term leadership in F&B restaurant chain business.
Ms. Veena Lertnimitr, Senior Vice President for Primary Distribution, The Siam Commercial Bank Public Company Limited, as Financial Advisor, revealed that the Securities Exchange Commission (SEC) has begun the day one count on the filing made by Mudman Public Company Limited (MM) for the initial public offering (IPO) of 210,980,750 shares.
MM is a leading operator of global food and lifestyle brands, positioning itself as a holding company, having equity stakes in fully-owned subsidiaries. It has two core business segments: i) Food and Beverage (F&B) restaurant chains, which are run using both global brands (i.e. Dunkin' Donuts, Au Bon Pain and Baskin Robbins) under master franchise agreements with international partners and MM's own brands (i.e. Greyhound Cafe and M-Kitchen); and ii) Lifestyle business, which involves marketing of 'Greyhound' lifestyle products (e.g. clothes, personal accessories, etc.) and partnering with other brands in creating products based on Greyhound brand's outstanding and unique concept.
Mr. Montree Sornpaisarn, Chief Executive Officer of Maybank Kim Eng Securities (Thailand) Public Company Limited, the Lead Underwriter of MM's IPO, noted that MM's current registered capital stands at THB 1,054,903,750, divided into 1,054,903,750 shares with a par value of THB 1 each, and the issued and paid-up capital stands at THB 843,923,000. He said MM will allot the 210,980,750 IPO shares (which, after the IPO, will represent 20% of MM's issued and paid-up capital) to i) the existing shareholders of Sub Sri Thai Public Company Limited ("SST"), a major shareholder of MM, who can exercise their pre-emptive rights, according to their respective shareholding percentage in SST, subject to a maximum limit of 105,490,375 shares (or less than 50% of the IPO shares); and to ii) the public, subject to the maximum limit of 105,490,375 shares (or less than 50% of the IPO shares) plus any balance shares after allotment to SST's shareholders.
Subject to approval of the IPO application and filing by SEC, MM and the lead underwriter will jointly set the IPO date and price. MM is expected to list on the Market for Alternative Investments (MAI) by Q2 of this year. The fund raised from the IPO will be used as working capital, to repay bank loans, and to support business expansions (e.g. establishment of new domestic and overseas branches, renovation of existing branches, improvement of distribution channels, introduction of new branch concepts, etc.).
Mr Nadim Xavier Salhani, MM's Chief Executive Officer, added that, as of 30 September 2016, MM has 439 branches in the F&B restaurant chain and lifestyle segments. For the three franchised global brands, it has i) 296 Dunkin' Donuts branches, which produce and sell doughnuts and beverage to medium- to high-end customers and provide catering and food stall services; ii) 71 Au Bon Pain branches, which sell bakery products, sandwiches, salads and soups for healthy diets, as well as premium-grade coffees and beverage; and iii) 31 Baskin Robbins branches, which sell premium-quality ice creams that are affordable to Thai consumers. MM plans to increase the number of branches continuously and develop new store designs that are attractive and respond to consumer behaviors.
As for the F&B restaurants bearing MM's own brands, it maintains 24 Greyhound Cafe branches, which consist of 13 directly invested branches in Thailand and 11 franchised branches in Hong Kong, Shanghai, Beijing and Malaysia. Greyhound Cafe is used both domestically and internationally to target students and middle- to high-income working people based on the concept "Simple with Creative Twist". Another Hound Cafe is used for Thai branches to attract young and high-income working people with neat urban lifestyles, based on the concept "Accessible Stylish Casual Italian with Asian Twist". M-Kitchen is the brand for MM's hospital cafeteria and IPD food services. It began the services at Ramkhamhaeng Hospital and now seeks to expand the cafeteria management business beyond the compounds of hospitals, including in private or international schools/universities, etc. MM's lifestyle business involves marketing of lifestyle products, e.g. clothes, personal accessories, etc., at 16 branches.
"We strive for leadership in the F&B restaurant chain business and aim for a long-term leader position through enhancement of market shares and creation of higher-than-market growth rates. Therefore, we will invest to implement expansions for MM's franchised and own brands, including opening new branches and renovating existing branches to respond to consumers' needs and behaviors and achieve growth targets," he said.
Ms Hansa Sermsri, MM's Chief Financial Officer, highlighted MM's great cash liquidity – due to the immediate cash received from customers and the credit terms for payments to suppliers – as well as the product brands that have become well-known and popular among consumers after constant branding and business development effort, and a talented management team with more than a decade's experience in F&B business who are highly skilled in planning for creation of innovations, including inventive products and stylish store designs. She said that MM is contemplating new store designs and marketing tactics to increase sales growths.
MM's core strategies for growths include continuous introduction of new products, quality and consistency in all aspects (from materials selection to distribution to branches), effective and rigorous cost control, sales promotion and branding through digital-media marketing, enhancement of brand value, establishment of new branches in promising locations, renovation of existing branches to respond to customers' needs, personnel development and maintenance of sound relationships with stakeholders.