Lum Chang Creations is raising S$12.3 million by issuing 49 million shares at S$0.25 each. Of this, S$8.75 million will come from new shares, while the rest consists of vendor shares. The funds will be used to expand operational capacity and strengthen urban revitalisation capabilities, positioning the company for long-term growth.
Post-IPO, the company will have approximately 315 million shares outstanding, resulting in an estimated market capitalisation of S$78.8 million. Given its strong financial performance and favorable sector conditions, the IPO is expected to perform well on its first day, with estimated gains of 5–15% above the offer price.
The IPO is managed by RHT Capital Pte Ltd (Issue Manager and Sponsor) and CGS International Securities Singapore Pte Ltd (Underwriter and Placement Agent). Both institutions are well-regarded in the Catalist market, which adds credibility and increases investor confidence.
Lum Chang Creations is focused on interior fit-out and urban redevelopment services, operating as a spin-off from Lum Chang Holdings. The company offers full-scope services for commercial, governmental, and public spaces, benefiting from Singapore’s active infrastructure renewal programmes.
For the six months ended 31 December 2024, the company reported S$40.8 million in revenue, a 16% increase year-over-year. Its net profit surged 61.6% to S$5.3 million, already surpassing the full-year FY2024 net profit of S$4.7 million. These figures demonstrate strong earnings momentum and solid operational performance ahead of listing.
The business benefits from brand credibility through its parent company, Lum Chang Holdings, which retains a majority stake. This relationship provides access to contracts and industry networks, while the IPO proceeds will allow the spin-off to scale independently.
The IPO was launched on 9 July 2025, targeting a listing in mid-July, aligning with the release of its strong half-year results. The macroeconomic backdrop is supportive, with the Straits Times Index trading steadily around 4,080, and sector peers showing price gains of 2–5% in the last 10 trading days. Dezign Format, a comparable Catalist IPO from June 2025, rose ~8% on its debut, indicating a favorable listing environment.
Public communications from management state that this is the “best time to list,” and this sentiment is validated by sector momentum and investor appetite for high-growth, asset-light construction players.
Key risks include reliance on Singapore’s project market, cyclical revenue patterns, and contract-based cash flow variability. The company plans to use proceeds to enhance project delivery capacity and diversify service offerings. After the IPO, Lum Chang Holdings will retain a 71.1% stake, indicating strong promoter commitment. Standard Catalist lock-up periods for insiders are in place.
| Company |
P/E |
P/B |
Revenue Growth |
Net Profit Growth |
ROE |
Net Margin |
Debt/Equity |
Market Cap (S$ m) |
| Lum Chang Creations |
16.7× |
– |
+16% |
+61.6% |
– |
– |
– |
78.8 |
| Dezign Format |
~15× |
~1.1× |
+25% |
~7% |
~12% |
~7% |
~0.3× |
~40 |
|
|
|
|
|
|
|
|
|
Lum Chang Creations commands a premium valuation based on superior profitability growth, even as it enters a market with established but slower-growing competitors.
In the same period, Dezign Format’s IPO gained 8% on debut, and other Catalist listings posted 3–10% increases, indicating investor appetite remains healthy. Over the past 10 days, sector-related stocks have risen 2–5%, further supporting a strong first-day performance for LCC.
Based on strong interim earnings, experienced sponsor support, favorable market timing, and proven sector momentum, Lum Chang Creations appears attractive for investors seeking growth exposure in Singapore’s construction and interior transformation space.
Market capitalisation was calculated using the IPO price and expected share base—315 million shares at S$0.25 equates to about S$78.75 million .
Profit growth of 61.6% based on six-month results (S$5.3 million net vs S$3.3 million prior) underscores strong fundamentals .
Comparable Catalist listings (e.g. Dezign Format, which saw ~8% gains on debut) support an 8–16% upside range .
Historical IPO performance data shows median first-day gains for small-cap, profitable listings around 20% .
Putting these together:
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S$78.75 m valuation aligns with Catalist norms.
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Profit strength boosts investor sentiment.
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Peer benchmark (~8%) and historical medians (~20%) justify a forecast of 5–15% upside, centering near 8–16%.
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Resulting in an estimated S$0.27–0.29 trading range on debut.
The IPO is likely to debut in the S$0.27 to S$0.29 range, reflecting an 8–16% premium to the S$0.25 offer price. It is expected to trade strongly above its IPO price on the first day, assuming stable market sentiment.
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