Thursday, March 9, 2017

KIMLY GROUP IPO: SHOULD YOU APPLY?

Kimly Group IPO
KIMLY GROUP IPO is the latest IPO for the Singapore stocks market. KIMLY GROUP IPO comes at the time when the Singapore stocks markets are behaving in a non-bullish manner after a great performance in January and February of the year. I believe Kimly GROUP IPO will be closely scrutinized by retail investors as investment ideas seem to dry from the current stocks markets.

KIMLY GROUP is a coffeeshop chain business which owns more than 70 business, including coffee shops, zi char stalls and a central kitchen. KIMLY GROUP has 64 food outlets under management and 121 food stalls in Singapore with a 5.8% market share. 170 million of the IPO shares will be for placement with only $3.8 million shares at $0.25 per share for retail subscription.

As a heartland boy, man and now uncle, I like to frequent good coffeeshop stalls for their generally okay to good foods at generally okay to good prices. However, I cannot remember how much of Kimly Group food stalls I have patronized at all since I frequent more of another local coffee shop chain (not because I like the latter but I have to as this coffee shop chain is in the orbit of my workplace). Notwithstanding the above, I believe the business model of Kimly Group is a fairly defensive one as regardless of the business cycle, everyone has to have meals and with so many of us working these days, the most convenient and fast way to fill one’s stomach is simply to buy meals outside.

I would be rather interested in Kimly Group IPO, noting that with a meal order of a mixed vegetable rices at $2.50, the price of the meal is equivalent to 10 shares. What if I buy 1,000 shares of Kimly Group stock (equivalent to 100 typical mixed vegetable meals) at $2,500 and say if the price of the stock increases to $0.30 after IPO, then I would pocket $500 and that would buy me another 200 meals of mixed vegetable rice? I would be able to channel my investment profits back to more meals! To lend a dose of perspective, if the stock price heads south, then I would cut back my budget, maybe just order $2 worth of mixed vegetables rice. And if I become a true Kimly Group shareholder, I would make sure I eat most of meals at Kimly Group so as to do my part in accruing revenue for my investment!

I have a thinking that one day, some other coffeeshop operators will join in the fray and then there will be competition among these cofffeeshop stocks. Remember, when we had just a pawnshop IPO? From one pawnshop IPO, more and more pawnshop IPOs follow. Cofffeeshop stocks might be the next suite of IPOs for SGX!

Okay, I have talked so much like an old Kopi uncle, now it is time to go and lim some kopi. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.
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