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I've recently begun to like Harry's too.
Will they have to issue Prospectus and all the necessary paperwork to make a move to the Catalist board?
I'll be eagerly waiting to read up on this one.
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Dec 9, 2010
Harry's to list on SGX Catalist bourse
Pub chain expects to raise up to $5 million to fund its expansion plans
By Esther Teo
THE bar chain Harry's has finally uncorked plans to join the stock exchange, but it is unlikely retail investors will get first bite of the cherry of the initial public offering (IPO).
Harry's is already listed on the Phillip Capital over-the-counter market but hopes to move to the Singapore Exchange's (SGX) Catalist bourse next month. The Straits Times understands that Harry's expects to raise $3 million to $5 million through a private share placement. Once it is listed, retail investors will be able to trade in the stock.
It has been a long wait for Harry's. The pub chain announced its intention to list in June 2008, but the shaky economic outlook forced it to call time on the idea.
But it has enjoyed a burst of growth since then and lodged its offer document with the SGX on Nov 19.
Harry's, which comprises about 30 bars, six restaurants and a boutique hotel here, might use the cash from the IPO to fund its ambitious expansion plans.
Chief executive Mohan Mulani said in October last year that the firm was looking to set up a Harry's bar in Vietnam before the end of this year.
He also said then that he wants to export its latest undertaking - The Club hotel brand - to Jakarta, Bangkok, Hanoi and Ho Chi Minh by the end of next year.
Harry's recorded revenue of $37.3 million in the 12 months to Dec 31 last year - 2.9 per cent down on the same period in 2008 - but profit before tax was $2.5 million, up from $920,000.
While Harry himself never existed, the pub chain created in his name by an American expatriate and his friends in 1992 is diversifying its business.
It made its first foray into hospitality with the opening of the 22-room boutique hotel The Club in Chinatown in April. But the firm is best known for its original bar at Boat Quay.
Mr Mulani bought the Boat Quay outlet in 1994 and while Singapore's largest bar chain operator has seen growth since, the offer document does cite risk factors.
These include the highly competitive industries Harry's plays in, including food and beverage, entertainment, hospitality and catering. Possible increases in the cost of food and beverages, higher rents and the inability to secure good locations for new outlets were also identified.
But Harry's said its well-recognised brand name and a large and regular customer base were strengths.
In January, it appointed Asia Pacific Breweries to produce its own Harry's Beer. It also launched Harry's Prosecco, a sparkling wine distilled in Italy.
With increasing consumer affluence and sophistication and government initiatives to promote the tourism, convention and exhibition industries, Harry's is also optimistic about the business' outlook.
Sias Research vice-president Roger Tan said, however, that he does not expect demand for the shares to be strong as both the company's revenue and profit have not increased much over the past couple of years. 'However, the company does have a good brand and may do well if its strategy is well thought out and implemented... Listing may also be a branding strategy to enhance awareness of its brand,' he added.
esthert@sph.com.sg
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09-12-2010, 03:05 PM
(This post was last modified: 09-12-2010, 03:06 PM by lonewolf.)
I owns some shares in Harry Holdings when it was first listed on the OTC and is looking at this as an opportunity to 'cash' out my initial investment. It was listed at 22c and currently trades on the OTC at 20.5c. So it remains to be seen if the move to Catalist will really give me an opportunity to cash out. Even if it doesn't, my initial stake was small as I was curious about the working of the OTC market.
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