Harry's Holdings

I am happy that my favourite Singapore bar chain business will soon be listed on SGX-ST Catalist.....
http://internetfileserver.phillip.com.sg...isting.pdf

Harry's Holdings shares are now being traded on Phillip Securities' OTC platform.

More info on Harry's Holdings.....
http://www.harrys.com.sg/Downloads/Harry...10-Oct.pdf [latest presentation materials]
http://www.harrys.com.sg/ [corporate website]

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.

wow, never thought a pub chain will list on stock exchange.

Personally I've never been to harry's as I always feel that it's a rather quiet place or a place for caucasian and expat crowd, usually I prefer to frequent the many thai disco joints for the more happening entertainment and boatloads of pretty girls that they bring in.

ratio is 1 to 4 in some places

(24-11-2010, 05:04 PM)sgd Wrote: wow, never thought a pub chain will list on stock exchange.

Personally I've never been to harry's as I always feel that it's a rather quiet place or a place for caucasian and expat crowd, usually I prefer to frequent the many thai disco joints for the more happening entertainment and boatloads of pretty girls that they bring in.

ratio is 1 to 4 in some places

In the past, I used to think the same way. However, I do think that Pub goers tend to be good repeat customers so long as the experience remains up to standard.

I'm still not too sure about the crowds. As sgd-san has mentioned, pubs do indeed attract a different crowd. I'm pretty sure Harry's attracts a more expat/tourist crowd. From my limited experience there, once in the afternoon on a weekend and once in the evening on a friday night, I can say that Harry's attracts a decent enough crowd at night. In the afternoon, there were customers but probably nothing to be excited about.

From the corporate slides, Harry's seems to have a lot more other lines of business as well- probably because they know that if they just remain in the pub business, it's not going to be good enough.

Having said all this, I'm going to wait till I see the prospectus to see how all these observations translate into numbers.

Dydx-san has been following this since its OTC days. I'm not sure what data or insights he has but I know he's been pretty upbeat about Harry's. I know I sure wouldn't mind an investment that I can drink to. =)

dxdy-san should go to local thai disco a few times then compare what is there against what harry has before deciding whether to invest his hard earned money there.

For one thing, Caucasian and Asian customers are 2 very different animals.

sgd, think the target group between harry's and thai discos are very different.... SG thai disco <<<<< the real deal =P

don't really see the selling point of Harry's (like some bars in Clark Quay specialises in magaritas or shots) other than them being everywhere... it's like an alcoholic starbucks if you know what i mean but then again pubs aren't their only interest.

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

Found the offer document. Was right there on SGX all the time. Makes for an interesting read into the F&B industry.

My thoughts at a glance:

- Razor thin margins (known), Not-so-good op cash flow after capex (flag). Business profitable for last 3 FYs (pretty good given the environment they're operating in.)
- Unrelated businesses (Gymboree gyms. Pet project of his wife's? flag)
- At present little contribution from catering or hotel business (too early to say or stepping too far from their circle of competence?)

I'm not sure I like the operating environment but looking at the Pub landscape, is there any other pub chain that has done what Harry's has does? i.e. Go beyond managing one or two pubs for owner interest and generate a consistent, identifiable brand? One has gotta admit that they have presence and for low margin environments, it's all about volume no?

The other point is their expansion plans which is the enticing part... =) but that's the difficult part to evaluate at a glance.

I'm still on the fence for this one.

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.

(09-12-2010, 03:05 PM)lonewolf Wrote: 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.

may i ask when was harry holdings first listed in the otc market through poems? and so far is there any dividends that u have received since holding this unlisted otc counter?