Bangkok--28 Mar--MT Multimedia
Mudman Public Company Limited (MM), a leading operator of global food and lifestyle brands, has set a preliminary price range of THB 5.00 – 5.50 per share and is expected to announce the final price by 31 March. The subscription period for IPO shares will be during 3-5 April, and MM will likely be listed on the MAI within April. The company appointed Maybank Kim Eng Securities (Thailand) as Lead Underwriter, and SCB Securities, Tisco Securities, RHB Securities (Thailand), Krungsri Securities, KTB Securities (Thailand) and Yuanta Securities (Thailand) as Underwriters, for the IPO of MM. The management announced its moves to expand the F&B restaurant business, including plans to increase Greyhound Cafe restaurant branches in Thailand by 6-9 branches to 19-22 branches by 2020, to penetrate new markets through franchising into 1-2 new countries annually, including opening a flagship store in the UK which will serve as the prototype store for the European markets, and to open more Dunkin Donuts, Au Bon Pain and Baskin Robbins branches.
On 22 March 2017, MM signed a contract to officially appoint Maybank Kim Eng Securities (Thailand) Public Company Limited as Lead Underwriter, and SCB Securities Co., Ltd., Tisco Securities Co., Ltd., RHB Securities (Thailand) Public Company Limited, Krungsri Securities Public Company Limited, KTB Securities (Thailand) Co., Ltd. and Yuanta Securities (Thailand) Co., Ltd. as Underwriters, for an Initial Public Offering (IPO) of its capital-increase shares.
Mr. Montree Sornpaisarn, Chief Executive Officer (CEO) of Maybank Kim Eng Securities (Thailand) Public Company Limited, the Lead Underwriter for the IPO, revealed that, given the confidence in MM's fundamentals and its potential growth as expressed by the institutional investors during MM's roadshow between 15-17 March, MM has set a preliminary IPO price range of THB 5.00-5.50 per share. The final price, which will be determined by book building process, is expected to announce by 31 March. In this regard, subscription periods for the IPO of MM include i) 29-31 March for subscription for existing shareholders of Sub Sri Thai Public Company Limited (SST) according to pre-emptive rights and ii) 3-5 April for public subscription. Pre-emptive subscription during 29-31 March is for the existing shareholders of SST who are entitled to the allocation of MM IPO shares, which the pre-emptive rights is determined in accordance with the respective shareholding percentages of each shareholder, whose names are shown in the share register of SST as of 16 March. Subscription for pre-emptive portion will be at price of THB 5.50 per share, and when the final price is released, if the final price is lower than the price subscribed by pre-emptive shareholders, then the difference will be refunded by the Lead Underwriter. For public subscription during 3-5 April, the subscription price will be at the final price. MM shares are expected to be listed on the Market for Alternative Investments (MAI) within April.
MM's current registered capital is THB 1,054,903,750, divided into 1,054,903,750 ordinary shares with a par value of THB 1 each. MM will allot the 210,980,750 IPO shares (representing 20% of MM's issued and paid-up capital post-IPO) to i) the existing shareholders of SST who exercise their pre-emptive rights with the maximum limit of 41,437,135 shares (or 20% of the capital-increase shares); and ii) to the retail and institutional investors with the maximum limit of 169,543,615 shares (or 80% of the capital-increase shares) plus any balance shares after allotment to SST's shareholders.
MM, as a holding company with six wholly-owned subsidiaries, is a leading operator of global food and lifestyle brands. The core business segments of the company comprise i) foods and beverages (F&B) restaurant chains under the global brands (i.e., Dunkin' Donuts, Au Bon Pain and Baskin Robbins) with the master franchise agreements with distinguished international partners and under the 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.
"Even though MM posted a net loss for 2016, it was mainly due to amortization of intangible assets from business combination and assets impairment which were accounting expenses. We are confident that MM's strong fundamentals and well-known and popular brands will enable the company to achieve healthy growths," said he.
Mr Nadim Xavier Salhani, MM's CEO, added that, as of 31 December 2016, MM has 456 branches in the F&B restaurant chain and lifestyle segments. For the three franchised global brands, it has i) 307 Dunkin' Donuts branches, which produce and sell doughnuts and beverage and provide catering services; ii) 72 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) 34 Baskin Robbins branches, which sell premium-quality ice creams that are affordable to Thai consumers.
As for the F&B restaurants under MM's own brands, it maintains i) 28 Greyhound Cafe branches, which are fashion cafes and full service restaurants, of which 14 branches are directly invested 'Greyhound Cafe' and 'Another Hound Cafe' branches in Thailand and another 14 branches are franchised branches in China, Hong Kong, Malaysia and Singapore; and ii) one M-Kitchen branch to manage a hospital cafeteria and IPD food services. MM began its the M-Kitchen service at Ramkhamhaeng Hospital and now is seeking to expand the business beyond hospitals, including in private or international schools, etc.
In the lifestyle segment, MM markets lifestyle products, e.g. clothes, shoes, personal accessories, etc., through four channels, i.e. shopping malls/modern trade stores, online stores, factory outlets and export. It maintains 14 stores of its own in leading shopping malls in Greater Bangkok.
MM's CEO added that the company strives for leadership in the F&B restaurant chain business and aims for a long-term leader position through enhancement of market shares and creation of higher-than-market growth rates. Therefore, he said, it will invest to implement continuous expansions for MM's franchised and own brands.
The company seeks to expand the Greyhound Cafe operations, planning to raise the number of branches in Thailand (with required investments of THB 15-20 million per branch) by 6-9 to 19-22 branches, by 2020, and contractually, its overseas franchisees in China, Hong Kong, Malaysia and Singapore are required to open five Greyhound Cafe branches during their five-year franchise periods. MM also aims to award franchises for 1-2 new countries every year.
In addition, the company will increase the presence of Greyhound Cafe elsewhere, especially in Europe. It has incorporated GHC Cafe (UK) Co., Ltd as a subsidiary of Greyhound Cafe Co with the objective to develop food and beverage (F&B) businesses in the UK. Its first Greyhound Cafe branch in the UK will serve as the flagship store featuring the concept 'Basic with a Creative Twist' and as the springboard for further expansion through franchising in Europe.
MM will grow the franchising business under the master franchise agreements for Dunkin' Donuts, Au Bon Pain and Baskin Robbins by increasing the number of branches by 12-15 branches, 5-6 branches and 3-5 branches per year, respectively. By the end of 2020, the branches are forecasted to reach 355, 96 and 54, respectively.