Car dealer, candy-maker could be first IPOs on SGX in 2025

SINGAPORE – Car dealer Vin’s Holdings and candy-maker YLF Group Marketing could be the first listings on the Singapore Exchange (SGX) in 2025.

The car dealer, whose businesses include the sale of new parallel-import and pre-owned motor vehicles, maintenance and repair services, as well as rental and leasing, lodged preliminary offer documents in mid-March for a listing on the SGX Catalist board.

Also in March, YLF, which manufactures and distributes its range of products in Singapore, Malaysia and Thailand, lodged its preliminary prospectus as it, too, mulls over a Catalist listing.

The two potential initial public offerings (IPOs) come after a barren spell for the Singapore market, with no listings in the first quarter.

The last IPO on SGX was that of karaoke and live show operator Goodwill Entertainment, which made its trading debut on the Catalist board in November 2024.

The Singapore bourse has not had a mainboard listing since that of Digital Core Reit – a data centre real estate investment trust (Reit) – in December 2021, excluding the listing of three special-purpose acquisition companies (Spacs) in 2022 and the listing of live-streaming platform 17Live Group in 2023, following its business combination with the Vertex Technology Acquisition Corporation Spac.

Singapore has had 10 Catalist listings in the last two years – six in 2023 and four in 2024.

In the fast lane

Founded by chairman Vincent Khong, Vin’s started as a car workshop in 1987, focusing on motor-vehicle maintenance and repair, as well as insurance claims. It later expanded its services to include rental and leasing of cars to other workshops for end customers to use while their cars were being repaired.

Mr Khong’s son Galvin joined the group in 2014 and is now its chief executive.

Vin’s began selling new parallel-import motor vehicles in 2015.

In 2019, the group started its “floor stock financing” business, through which it purchases pre-owned motor vehicles from other car dealers and sells them back to these dealers – at a profit – to help them finance their purchase.

Currently, the group has two car showrooms – one at Midview City in Sin Ming and the other at Revv in Corporation Drive. It also has a workshop at AutoCity in Sin Ming and an office at Carros Centre in Kranji for handling accident reporting and insurance matters.

In its preliminary prospectus, Vin’s said it intends to set up a new showroom in the first half of 2025.

For the latest nine-month period ended September 2024, Vin’s revenue edged up 1.1 per cent year on year to $83.7 million.

Revenue from its automobile sales and related services – its largest business segment, contributing 80.6 per cent of total revenue in the first nine months of 2024 – fell 3.4 per cent to $67.5 million, mainly due to lower demand for floor stock financing and a decline in new car sales. This was partially offset by higher pre-owned car sales.

Earnings fell 18 per cent to $2 million, from $2.5 million in the corresponding period the previous year.

The net profit decline was led by a 43.1 per cent jump in administrative expenses to $6.1 million, and a 26.2 per cent rise in finance expenses to $1.5 million.

Professional fees jumped to $700,000, from $34,000 previously, due to one-off listing expenses.

For reference, Vin’s recorded revenue of $106.4 million and net profit of $3.3 million for the full year ended December 2023.

Vin’s said it intends to use part of its net proceeds from the potential IPO to drive its digital transformation and information technology integration plans and to expand its showrooms, workshops and after-sales services.

Seeking sweet success

Candy-maker YLF is looking to expand its product mix, grow its distribution network in overseas markets and explore inorganic growth through acquisitions, joint ventures or strategic alliances.

The group is led by its executive chairman and CEO Lee Tee Wei, who has more than 30 years of experience in the business of manufacturing and distribution of confectioneries. His brothers, Mr Lee Tee Beo and Mr Lee Tee Yong, are YLF’s chief operating officer and chief sales and marketing officer, respectively.

The group was started around 1975 by the Lee siblings’ parents as Yew Lian Foodstuffs Trading, which sold food and beverage products.

It later developed its own Pikin brand of plum candies and beverages in the 1980s, and registered its first Pikin trademark in Singapore in 1987. It also developed its own Beardy candy brand in 2000, and its Toy’s Castle brand of toys in 2015.

YLF has entered into licensing agreements with international brands such as Disney and Warner Bros, under which it designs, manufactures and distributes candies, biscuits, novelty products and stand-alone toy products – claiming these as intellectual property.

It also distributes established third-party candy brands, such as Yupi, PEZ and Kidsmania.

YLF has a production facility in Johor and a distribution network supported by its own logistics fleet in Singapore and Malaysia, as well as through an associated company in Thailand.

For the nine-month period ended September 2024, revenue declined 6.9 per cent to $24.7 million. About half of that, or $12.4 million, was derived from its in-house brands.

Net profit fell 42.1 per cent to $2 million, from $3.4 million in the year-ago period.

For comparison, YLF reported revenue of $34.2 million for the 2023 financial year, with net profit of $4.2 million.

In addition to Singapore, Malaysia and Thailand, the group said it has started expansion into Vietnam, where it has secured warehouse and office space and begun the distribution of its products.

THE BUSINESS TIMES