Singapore-based MindChamps PreSchool, an operator and franchiser of premium-range pre-school centres in the city-state, has lodged its preliminary prospectus for a mainboard listing on the Singapore Exchange (SGX).
Founded as an educational research centre in Australia in 1998, MindChamps opened its first pre-school in Singapore in 2008. IPO proceeds raised from its public float on the SGX Mainboard will be used for partial repayment of loans as well as to fund its potential expansion plans in Singapore and overseas.
The initial public offer (IPO) will include an international placement to investors as well as a public offering. MindChamps currently has 10 company-owned and 44 franchisee-operated pre-schools, with its reading and writing centres having a presence across Singapore, Australia, the Philippines and the United Arab Emirates (UAE).
According to Bloomberg, the firm is seeking a valuation of about S$200 million ($147.5 million) and has secured China First Capital Group (CFCG), Hillhouse Capital and Target Asset Management as cornerstone investors who will collectively hold a post-listing stake of 11.97 percent.
A stock exchange filing by CFCG in Hong Kong states that it plans to subscribe for a 4.99 percent stake in MindChamps in a financial commitment not expected to exceed S$11 million.
Ahead of the IPO, it has entered into business partnerships with CFCG and Hillhouse Capital that will see them operate pre-schools and kindergartens under the MindChamps brand in China, including Hong Kong, as well as in Australia and the US.
CFCG primarily sells automotive parts but has begun diversifying into the education business. In a statement, the company said, “Globally, the early childhood education sector has gained much visibility in recent years. MindChamps PreSchool is well positioned to ride on the growth in the early childhood education industry and has built a prominent brand for pre-school education and achieved a leading position in the premium-range pre-school market.”
Recently, Singapore Press Holdings (SPH) boosted its stake in MindChamps by an additional 4.84 percent for a consideration of S$3.95 million through its wholly owned subsidiary Invest Learning, which currently holds a 26.84 percent interest in MindChamps. SPH acquired a 22 percent stake in MindChamps for S$12 million in 2014.
By Shiwen Yap
Source Deal Street Asia
