[SINGAPORE] Lum Chang Creations (LCC) has drawn strong investor interest for its initial public offering (IPO), with one million offer shares about 47.3 times oversubscribed by retail investors.
By the close of the public offer at noon on Thursday (Jul 17), the urban revitalisation specialist had received 599 valid applications for the offer shares.
These applicants applied for an aggregate of 47.3 million shares; application monies received amounted to about S$11.8 million, LCC said on Friday.
RHT Capital is the sponsor and issue manager, and CGS International Securities Singapore is the underwriter and placement agent for the offering.
LCC had offered 49 million shares at S$0.25 each, including 48 million offered under the placement tranche. These were managed by CGS International Securities Singapore, and were fully subscribed with application monies received totalling S$12 million, LCC said.
Shares of LCC will begin trading on the Singapore Exchange’s Catalist board next Monday.
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Based on valid applications for all 49 million invitation shares, the overall IPO was about two times subscribed.
LCC noted that the offering has received “strong interest and commitment”, including from institutional investors such as Lion Global Investors, Nikko Asset Management Asia and ICHAM Master Fund VCC. This highlights the company’s growth potential in Singapore’s urban revitalisation sector, it added.
LCC was spun off from mainboard-listed property developer Lum Chang Holdings following an internal restructuring completed in June.
It specialises in urban revitalisation projects through conservation, restoration, interior fit-outs as well as addition and alteration works. It also provides aftercare services for certain retail projects, and manufactures wood furniture as well as fixtures for retail customers.
“Well-positioned”
LCC’s IPO has raised total gross proceeds of S$12.25 million, including S$8.75 million from new shares and S$3.5 million from vendor shares.
Based on the invitation price and the post-invitation share capital of the company of 315 million shares, its market capitalisation now stands at S$78.75 million.
Managing director Lim Thiam Hooi said the invitation will allow LCC to strengthen its capabilities and expand its market presence.
He added that this comes amid a “robust outlook for private sector projects in Singapore’s construction industry, and promising prospects in the urban revitalisation specialist industry” arising from government commitments to preserve Singapore’s heritage and promote adaptive reuse initiatives.
For instance, Lim believes LCC is “well-positioned to capitalise on emerging opportunities under initiatives from the National Heritage Board’s Our SG Heritage Plan 2.0”. The plan covers, among others, modernist building conservation and the potential designation of a second Unesco World Heritage Site in Singapore.
Lim previously told The Business Times that he sees this period as an opportune time to list, given that LCC is scaling rapidly and entering a more mature phase of growth.
He also shared then that net proceeds from the IPO are expected to support LCC’s growth plans, improve its visibility and allow the company to operate more independently.
The company’s board of directors intends to recommend dividends of not less than 30 per cent of the group’s net profit attributable to shareholders in each of the financial years ended Jun 30, 2025, and Jun 30, 2026.
