Leong Guan Holdings Limited Makes Strong Debut on SGX Catalist, Closes Up 4.3%

Key Highlights for Investors

• Trading Debut: Leong Guan Holdings Limited (“Leong Guan”), a Singapore-based food manufacturer and distributor, successfully listed on the Catalist Board of the Singapore Exchange Securities Trading Limited (SGX-ST) on 11 December 2025.
• Share Price Performance: Shares opened at S\$0.245, reached an intraday high of S\$0.265, and closed at S\$0.24, representing a 4.3% increase over the placement price of S\$0.23. The trading volume on the first day was approximately 4.99 million shares.
• Market Capitalisation: Based on the closing price, Leong Guan’s market capitalisation stands at approximately S\$24.3 million, with 101.2 million shares issued.
• IPO Details: The initial public offering (IPO) was conducted through the placement of 20,650,000 shares (16,300,000 new and 4,350,000 vendor shares) at S\$0.23 per share. The placement was fully subscribed, indicating strong investor demand.
• Dividend Policy: Leong Guan commits to a minimum dividend payout of 80% of net profit for FY2025 and at least 35% for FY2026. This is a significant draw for income-seeking investors and could support share price strength if profits meet expectations.
• Use of IPO Proceeds: The company raised net proceeds of approximately S\$2.1 million, which will be used for expansion into export markets, broadening the product range, enhancing manufacturing facilities, pursuing acquisitions, joint ventures, and strategic alliances, and providing for general working capital.
• Key Shareholders: Notable investors include Lim Hock Chee, DCI&E Food Ltd, Fong Yew Foh, Bobby Lim Chye Huat, Par Investment Pte Ltd, and Prima Portfolio Pte Ltd.
• Business Overview: Leong Guan specialises in fresh noodle and soy bean-based beancurd products, distributing to a wide range of customers, including over 2,000 commercial and retail clients in Singapore and for export. Their client base includes hotels, restaurants, caterers, food courts, hawkers, schools, hospitals, supermarkets, minimarts, and e-commerce platforms.
• Growth Strategy: The company aims to leverage its public listing for greater flexibility, pursue new growth opportunities, and enhance its manufacturing capabilities. There is a focus on product innovation, operational excellence, and expanding their regional footprint.
• Reputation: The “LG Brand” is recognised in Singapore for quality, consistency, and innovation, with more than 22 years of industry experience.
• Corporate Governance: ZICO Capital Pte. Ltd. acted as Sponsor, Issue Manager, and Placement Agent for the IPO.

Developments That May Impact Share Price

• Strong IPO Demand: The full subscription of the IPO and participation by prominent investors signals strong market confidence, which could positively influence share price momentum.
• High Dividend Policy: The company’s commitment to a high dividend payout ratio (80% for FY2025) provides income certainty and could serve as a share price catalyst, especially if earnings remain robust or exceed expectations.
• Growth Initiatives: Plans to expand export markets, introduce new products, and pursue M&A or strategic partnerships indicate an aggressive growth strategy. Any material developments in these areas (e.g., acquisitions, new market entries, or significant new contracts) may have a material impact on future revenue and profits.
• Use of IPO Funds: Effective deployment of the S\$2.1 million raised could enhance manufacturing efficiency, broaden product offerings, and accelerate market expansion, potentially driving future earnings growth and valuation re-rating.
• Industry Positioning: With a well-established brand and diversified customer base, Leong Guan is well-positioned to weather industry challenges and capitalise on new opportunities, which may reduce business risk and support valuation multiples.
• Leadership and Track Record: The company is led by Executive Director and Chairman, Mr Lim Tze Chiang, who has articulated a clear vision for sustainable growth, operational excellence, and ongoing innovation.

Additional Information for Shareholders

• Leong Guan’s successful listing is expected to increase its visibility and access to capital markets, further strengthening its ability to invest in innovation and capacity expansion.
• The Group’s customer base and established distribution network provide a solid foundation for future growth, especially as it seeks to tap into regional and export markets.
• Investors should monitor company announcements for updates on the use of IPO proceeds, progress on expansion plans, and any new strategic alliances or acquisitions, as these developments could significantly influence share price.

Contact and Further Information

For more information, investors can visit https://leongguan.com/ or contact the company’s media and investor relations team at [email protected] or call (65) 6958 8008.

Disclaimer

This article is for informational purposes only and does not constitute or form part of an invitation, solicitation, or offer to acquire, purchase, or subscribe for any securities in any jurisdiction. The information provided should not be relied upon as the sole basis for any investment decision. Investors are advised to refer to the official offer document and consult with professional advisers before making any investment decisions. The Singapore Exchange Securities Trading Limited and the Monetary Authority of Singapore have not reviewed this article, and assume no responsibility for its content.

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