Soon Hock Enterprise Holding Limited

Prospectus Date: 29 September 2025

Soon Hock Enterprise Holding IPO: In-Depth Analysis of Financials, Growth Strategy, and Listing Prospects

Soon Hock Enterprise Holding Limited is set to debut on the Mainboard of the Singapore Exchange (SGX-ST), marking a significant entrant in the industrial property sector. This comprehensive review covers all critical aspects of the IPO, including offer details, use of proceeds, financials, risk factors, allocation, and outlook, providing investors with the insights needed to make an informed decision.

IPO Snapshot: Offer Structure and Key Metrics

This section summarizes the critical facts of the Soon Hock Enterprise Holding Limited IPO, including offer size, pricing, allocation, and dividend intentions.

• IPO Symbol: Not explicitly disclosed.
• Offer Price: S\$[●] per share (to be determined at pricing).
• Total Offer Size: [●] shares (comprising Vendor Shares, New Shares, and Cornerstone Shares).
• Post-IPO Outstanding Shares: [●] shares following the completion of the offering and issuance of Cornerstone Shares.

• Dividend Policy: Board intends to recommend and distribute at least 25% of net profit after tax for the period from the Listing Date to 31 December 2025 and for FY2026, subject to cash management, capex, acquisitions, and debt considerations. This is a target, not a binding commitment.
• Listing Date: Shares expected to commence trading at 9:00 a.m. on [●] 2025 (Singapore time).
• Offer Timetable: Singapore Public Offer opens and closes on [●] 2025; balloting and allocation follow; settlement and commencement of trading on [●] 2025.
• Minimum Application: 1,000 Offering Shares, in multiples of 100 thereafter.

Use of Proceeds: Focused on Growth and Development

Soon Hock Enterprise signals a growth-driven IPO with most proceeds targeted for property acquisition, development, and pipeline projects. The breakdown is as follows:

Pending deployment, funds may be placed in short-term deposits or money market instruments. The company commits to periodic status updates on use of proceeds.

Placement and Issuance Breakdown

• Public Offer: [●] shares via public application in Singapore.
• International Offer: [●] shares to institutional and selected investors outside the US.
• Cornerstone Investors: Up to S\$35,630,000 of shares allocated to cornerstone investors, who are not subject to lock-up restrictions.
• Employee Share Option Scheme: Option Shares may be issued under the Soon Hock Employee Share Option Scheme.

Investor Participation and Book Quality

Cornerstone tranches are a key feature of the offering, with significant allocation to named cornerstone investors. Each enters a Cornerstone Subscription Agreement for shares at the offer price. These tranches are conditional on the Management and Underwriting Agreement being in effect on the listing date. Cornerstone investors are not subject to post-listing lock-up.

Details on specific names, institutional allocations, and oversubscription rates by tranche are not disclosed. As such, book quality and first-day performance must be inferred from the structure and cornerstone participation, suggesting institutional support.

Deal Parties and Offer Structure

The IPO is supported by a syndicate of leading financial institutions, indicating robust sponsorship and deal execution.

• Joint Issue Managers, Joint Global Coordinators, and Joint Bookrunners:
  • Maybank Securities Pte. Ltd.
  • United Overseas Bank Limited
• Underwriters: Same as above, with underwriting fees specified as a percentage of gross proceeds from the sale of New Shares and Cornerstone Shares.
• Legal, audit, and advisory support: Includes Deloitte & Touche LLP (independent auditor and reporting accountant), Novus Corporate Finance Pte. Ltd. (independent financial adviser), Savills Valuation and Professional Services (S) Pte Ltd and Cushman & Wakefield (S) Pte Ltd (valuation and market reporting).

Stabilization or over-allotment (greenshoe) arrangements are not explicitly mentioned. The presence of established bookrunners and a cornerstone tranche suggests a well-supported listing process.

Company Overview: Business Model, Revenue Streams, and Market Position

Soon Hock Enterprise Holding Limited operates in the industrial property sector, focusing on the development, acquisition, and management of industrial properties in Singapore. The company’s revenue streams include:

• Property development and sales
• Rental income from industrial and commercial properties
• Asset management and related services

Customers and suppliers are typically referred by trade names, with contracts often executed at the group level.

Geographical Focus: Singapore-centric, with key properties at 2F Jalan Papan, 20 Shaw Road, and Senang Crescent, among others.

Financial Health: Multi-Period Performance

Key Observations:

• FY2023 saw a significant revenue surge, likely due to asset sales or project completions, with gross and net profit peaking accordingly.
• Q1 2025 saw a net loss, emphasizing earnings volatility, possibly due to timing of project revenue recognition or increased costs.
• High indebtedness relative to equity signals a leveraged balance sheet, a common trait for property developers.

Soon Hock Enterprise holds eligibility for listing on the SGX Mainboard, reflecting compliance with stringent listing requirements. Market share, competitive ranking, and industry size are discussed in the appended independent market report, but concrete figures are not quoted in the main body.

Management Team

Key management includes Mr. Tan Yeow Khoon and Mr. Tan Min Loon, who have entered into lock-up arrangements with the issue managers. Full details on executive and non-executive directors, their roles, and backgrounds are provided in the prospectus.

Trends, Timing, and Market Environment

Sector Outlook: The company operates in Singapore’s industrial property market. The appended independent market report by Cushman & Wakefield provides data-driven insight into market conditions as at end-2024, noting macro trends, demand drivers, and sectoral prospects.

IPO Timing: The offer period and listing date are set for [●] 2025, positioning Soon Hock Enterprise to capitalize on current market conditions. The offer window is at least two market days, with SGX-ST shareholding spread requirements to be met for listing.

Economic Conditions: The industrial property sector has shown resilience, but sectoral and market volatility remain risks. There is no mention of other concurrent IPOs in the period for peer performance benchmarking.

Recent Developments: The company has completed a restructuring exercise and undertaken property acquisitions and developments to bolster its pipeline.

Risk Factors

A summary of the principal risks disclosed:

• No prior public market: There is a risk that an active or liquid trading market may not develop. Investors may not be able to sell shares at the offer price or at all.
• Market volatility: Share price could be impacted by factors beyond the company’s control, including economic, political, and sector developments.
• Forward-looking statements: Subject to significant uncertainties; assumptions may not materialize.
• Dividend payment risk: The stated payout ratio is an intention, not a guarantee. Actual dividends are at the Board’s discretion and subject to financial performance and constraints.
• Leverage and financial risk: High indebtedness may limit financial flexibility and increase vulnerability to interest rate changes or economic downturns.
• Use of proceeds risk: Actual application of IPO funds may differ from intentions due to unforeseen circumstances.
• Industry and macroeconomic risks: Fluctuations in the industrial property market, regulatory changes, and other sector-specific risks.

Growth Strategy and Expansion Plans

Soon Hock Enterprise plans to:

• Acquire new land sites and buildings for development and redevelopment.
• Invest in the development of 20 Shaw Road and redevelopment at Senang Crescent.
• Support existing and future property development projects through funding from IPO proceeds.
• Utilize general working capital for operational flexibility.

Timelines for these initiatives are tied to the deployment of IPO proceeds and market conditions.

Ownership and Lock-Ups

• Pre-IPO Shareholding: Not explicitly detailed in the main body, but the prospectus sets out that principal shareholders and key management have agreed to lock-up arrangements.
• Post-IPO Shareholding: [●] shares outstanding; cornerstone investors are not subject to lock-up; the company and certain shareholders are restricted from issuing/selling additional shares for six months post-listing (except for new and cornerstone shares).
• Employee Share Option Scheme: Option Shares may be issued under the company’s ESOP.

Valuation and Peer Comparison

Key valuation metrics, as disclosed:

Peer metrics are not disclosed in the prospectus.

Research Coverage and Institutional Opinions

Novus Corporate Finance Pte. Ltd. acts as the independent financial adviser, providing opinions on related party transactions and pricing mechanisms. No analyst price targets or external ratings are included in the prospectus.

IPO Allotment Results

Final subscription outcomes by tranche are not stated. Balloting procedures and allocation methodology are described, with the company and vendor reserving the right to scale down or reject applications to achieve an adequate market spread.

Listing Outlook: Subscription Appeal and Trading Prospects

Based on the disclosed facts:

• The offer is supported by leading investment banks and cornerstone investors, indicating institutional confidence.
• A growth-driven use of proceeds and a stated commitment to dividends may appeal to yield and growth investors.
• Financials demonstrate earnings volatility and a high degree of leverage, typical in the property development sector.
• The absence of peer valuation and sector performance data limits first-day trading range estimates; however, institutional support and sector trends suggest stable to moderate debut performance, barring adverse market movements.

Inferred Outlook: The IPO appears reasonably attractive for investors seeking exposure to Singapore’s industrial property sector, subject to risk tolerance regarding leverage and earnings volatility. The likely first-day trading range is expected to be near the offer price, with upside potential if sector sentiment and institutional demand are robust.

Prospectus Access and Application Information

To obtain the full prospectus, visit: https://eservices.mas.gov.sg/opera/

The prospectus is also available at http://www.sgx.com

How to Apply for Soon Hock Enterprise Holding IPO

• Applications can be made via printed application forms, ATMs of participating banks (DBS Bank Ltd., United Overseas Bank Limited, Oversea-Chinese Banking Corporation Limited), and their internet/mobile banking interfaces.
• Minimum initial application: 1,000 shares, in multiples of 100 thereafter.
• Application period opens at [●] [a.m./p.m.] on [●] 2025 and closes at [●] on [●] 2025 (dates to be confirmed).
• Applicants must be in Singapore and comply with all eligibility and legal requirements.

Note: Investors are responsible for reviewing all application steps and eligibility criteria as described in the official offer document prior to subscribing.