Leong Guan Holdings Limited

Date of Prospectus: 28 November 2025

Leong Guan Holdings IPO: Deep Dive Into Singapore’s Leading Noodle Manufacturer’s 2025 Catalist Listing

Leong Guan Holdings Limited launches its initial public offering (IPO) on the Singapore Exchange’s Catalist board, presenting an opportunity for investors to participate in one of the region’s established food manufacturers. This article provides an investor-grade, analytical review of the offer terms, business fundamentals, risks, growth prospects, and outlook, strictly based on the prospectus.

IPO Snapshot: Offer Structure, Pricing, and Allocation

Leong Guan Holdings Limited (IPO Symbol: Not disclosed) is offering a total of 20,650,000 Placement Shares at a fixed Placement Price of S\$0.23 per share. The offer consists of 16,300,000 New Shares and 4,350,000 Vendor Shares. Upon completion, the post-IPO share capital will stand at 101,220,000 shares. The total gross proceeds from the Placement are approximately S\$4.75 million, with the Company raising S\$3.75 million from the New Shares and S\$1.0 million from Vendor Shares. The net proceeds to the Company after estimated listing expenses of S\$1.60 million are approximately S\$2.15 million [[15]], [[75]].

Other shares to be listed include ZC Shares (Sponsor fee), Option Shares (Employee Share Option Scheme), Award Shares (Performance Share Plan), and Incentive Shares (management incentive).

Timetable: The Placement opens on 28 November 2025 and the Application List closes at 12:00 noon on 9 December 2025. Trading is expected to commence on 11 December 2025 [[31]].

Use of Proceeds: Driving Expansion and Strategic Growth

Leong Guan Holdings is positioning itself for growth with a clear allocation of IPO proceeds:

• S\$0.7 million (18.67%) for enhancement of manufacturing facilities
• S\$0.6 million (16.01%) for acquisitions, joint ventures, and strategic alliances
• S\$0.3 million (8.00%) for expansion of export markets and product range
• S\$0.55 million (14.64%) for general working capital

This allocation underscores a growth-driven strategy, prioritizing capacity, market reach, and future M&A over debt reduction, as no proceeds will be used to repay debt [[75]], [[76]].

Dividend Policy: Commitment to Shareholder Returns

Leong Guan Holdings sets out a clear, attractive dividend policy:

• Minimum of 80% of net profit for FY2025 will be distributed to shareholders
• Minimum of 35% of net profit for FY2026 will be distributed to shareholders

The policy demonstrates a strong commitment to shareholder returns in the initial years post-listing [[3]].

Placement and Issuance Breakdown

The entire Placement is offered via bookbuilding with no public retail tranche or cornerstone/anchor investors named in the offer. There is no employee allocation exceeding 5%, and no introducers or consultants have been engaged for the Placement [[38]], [[39]]. All shares are offered at the fixed price of S\$0.23 per share.

Investor Participation & Book Quality

There are no named anchor, cornerstone, or institutional investors disclosed. No details are provided on retail/institutional oversubscription or book coverage. The Company states that it is not aware of any person or group intending to subscribe for 5% or more of the Placement Shares, but notes that interest may arise during the book-building process. If any person is allotted 5% or more, the Company will announce accordingly [[39]]. There are also no pre-listing disposals or sales by early shareholders disclosed.

Book quality and expected first-day performance cannot be directly inferred due to lack of public subscription data. However, the absence of a retail tranche and the focus on private placement may suggest a strategy targeting institutional and sophisticated investors, but no evidence of excess demand is provided.

Deal Parties and Structure

ZICO Capital Pte. Ltd. acts as the Sponsor, Issue Manager, and Placement Agent for the IPO [[1]], [[15]], [[25]]. There is no mention of global coordinators, joint bookrunners, underwriters, or a stabilization/greenshoe option. The Sponsor’s role is key in assessing suitability for Catalist listing. The absence of a greenshoe and a single sponsor/manager structure may suggest a focused but less broad-based support for aftermarket stabilization.

Company Overview: Business Model, Products & Market Position

Leong Guan Holdings Limited is a technology-driven food manufacturer with a primary focus on fresh noodle and soy bean-based beancurd products under the “LG Brand.” The business is built on three revenue streams:

• Self-manufactured products (noodles, beancurd, related items)
• Trading (distribution of third-party food products)
• OEM production (for third parties)

The Company serves as a one-stop food sourcing solution for customers, with a diversified customer base across foodservice, retail, and OEM channels. It operates from several facilities, including a main site at Woodlands Link and a new factory at Woodlands Terrace dedicated to soy bean-based products [[14]].

Competitive advantages include:

• Technology-driven production and supply chain
• Dedicated in-house R&D team for new product development
• Wide product range, established brand and reputation for quality
• Qualified and experienced management team
• Multiple food quality and safety certifications

Management Team: The Company is led by Mr. Lim Tze Chiang, Mr. Lim Hock Chai, and Mr. Chua Lian Hock (exact roles not disclosed), with further details provided in the prospectus [[13]], [[186]].

Financial Health: Key Performance Highlights

Leong Guan Holdings demonstrates solid, growing profitability over the past three years, though with some revenue volatility. The latest period shows an improvement in profit margins.

*Excludes S\$0.1m listing expenses for FY2024 [[3]], [[35]], [[43]].

Balance Sheet (as of 31 Mar 2025):

• Total Assets: S\$16.8 million
• Total Liabilities: S\$10.4 million
• Total Equity: S\$6.3 million
• Net Cash (pro forma): S\$4.77 million (after IPO net proceeds)
• Debt: S\$3.6 million (primarily secured)

Market Position and Competitive Advantages

Leong Guan Holdings is a recognized brand in Singapore’s food manufacturing sector, with a track record of compliance to food safety standards and an established reputation for quality. The Company leverages technology to drive operational efficiency and scale, with an in-house R&D team to innovate and meet evolving consumer preferences. It positions itself as a one-stop sourcing solution for the foodservice and retail market [[34]].

Trends, Timing & Environment

The Singapore food manufacturing sector remains resilient, supported by steady local demand, rising health consciousness, consumer preference for convenience foods, and growing export opportunities. The Company highlights these themes as favorable demand drivers for its business.

The IPO’s timing coincides with a period of steady sector fundamentals, and the offer period (28 November–9 December 2025) places the listing ahead of the year-end, potentially capturing investor attention in a less crowded pipeline. There are no macroeconomic headwinds or negative sector developments reported in the document. The Company expects cost increases related to compliance and public listing, and some margin pressure from new director and executive remuneration, but overall, market conditions are described as stable for listing [[173]], [[176]].

Risk Factors

Key risks disclosed include:

• Food safety, health, and hygiene risks inherent in manufacturing and food supply chain
• Working capital and borrowing risks due to potential mismatches between cash flows and expansion funding needs
• Equity dilution risk from future fundraising, ESOS/PSP plans, and possible non-participation by overseas shareholders
• Absence of guaranteed dividends; payouts are at Board discretion and subject to future financial performance
• Share price volatility risk due to low float, lack of trading history, and possible post-IPO share sales by major shareholders
• Potential de-listing risk if the Company loses its Catalist sponsor for more than 3 months
• Takeover defense provisions in Singapore law that may deter future control changes

No single-customer, supplier, or geographic concentration risk is highlighted, and all material related-party and interested person transactions are disclosed [[45]], [[63]], [[71]], [[73]], [[74]].

Growth Strategy

Leong Guan Holdings outlines a multi-pronged growth plan:

• Expand domestic and export market reach and deepen penetration
• Diversify into new and value-added products through R&D and facility upgrades
• Adopt sustainable, green initiatives in manufacturing
• Accelerate growth via strategic acquisitions, joint ventures, and alliances (S\$0.6 million of proceeds earmarked for this, but no targets identified as of the prospectus date)

The Company is investing in manufacturing upgrades and exploring bolt-on M&A to drive scale and market presence [[173]].

Ownership, Lock-ups, and ESOPs

• Pre-IPO Shares: 83,849,612
• Post-IPO Shares: 101,220,000
• Moratorium/Lock-up: Details are referenced but not fully quantified; Controlling Shareholders will be able to sell after the lock-up period, which could create post-IPO share price pressure [[71]]
• ESOP/PSP: LG Employee Share Option Scheme and Performance Share Plan in place; future share-based compensation could dilute public shareholders [[72]]

Valuation and Peer Comparison

Placement Price: S\$0.23 per share
Implied P/E (FY2024): 11.1x
Implied P/B (post-Placement, 31 Mar 2025): 2.74x (S\$0.23 / S\$0.0839 NAV per share)
Dividend Yield (FY2025 target, if 80% payout): Not calculable from available net profit projection
No peer or sector comparables or recent IPOs are referenced in the document; no tables provided as such data is not disclosed [[43]].

Listing Outlook: Value Assessment and First-Day Prospects

Based strictly on the prospectus, Leong Guan Holdings presents a case for growth, profitability, and shareholder yield. The Company offers a solid track record of profits, an attractive initial dividend commitment (80% of FY2025 profit), and a clear use of proceeds for expansion and M&A. However, the lack of named anchor investors, book coverage data, or stabilization mechanisms introduces uncertainty about first-day aftermarket support and trading strength. The offer is priced at 11.1x 2024 earnings, implying a reasonable valuation for a stable food manufacturing business with upside potential if its growth strategy succeeds.

Given the absence of oversubscription data and the lack of a retail tranche, the IPO’s first-day trading range may be volatile and will depend on institutional demand established during bookbuilding. The risk of post-moratorium selling and possible low liquidity should also be weighed. Investors seeking exposure to Singapore’s resilient food sector with a focus on yield and moderate growth may find the offer attractive at the stated price, but should expect initial price fluctuations.

Prospectus Access

The official prospectus and Offer Document are available at: http://www.sgx.com

How to Apply

Applications for the Placement Shares may be made by completing the Application Form available with the Offer Document. The Placement is open from 28 November 2025 and closes at 12:00 noon on 9 December 2025. Applicants should follow the instructions in the Application Form and submit their applications to the Placement Agent or as otherwise directed in the Offer Document [[30]], [[31]], [[454]].

Allotment is at the sole discretion of the Company, the Vendor, and the Sponsor, Issue Manager and Placement Agent. No shares will be allotted later than six months after the registration date.

This article is for informational purposes and is grounded strictly in information disclosed in the prospectus for Leong Guan Holdings Limited’s IPO.