PREMIUM CATERING (HOLDINGS) LIMITED ANNOUNCES PRICING OF $9.5 MILLION INITIAL PUBLIC OFFERING

Rhea-AI Summary

Premium Catering (Holdings) (Nasdaq: PC) has announced the pricing of its initial public offering (IPO) of 2,000,000 ordinary shares at $4.75 per share, aiming to raise $9.5 million in gross proceeds. The company is offering 1,650,000 shares, while selling shareholders are offering 350,000 shares. Trading is set to begin on the Nasdaq Capital Market on September 25, 2024, under the ticker symbol 'PC'. The offering is expected to close around September 26, 2024.

PC is a food caterer in Singapore, providing prepared meals to foreign workers, operating food stalls, and offering buffet catering services. Bancroft Capital, is acting as the sole underwriter for the IPO. A registration statement has been filed with the SEC and declared effective on September 23, 2024.

Positive

• Successful pricing of IPO, raising $9.5 million in gross proceeds
• Listing on Nasdaq Capital Market, potentially increasing visibility and liquidity
• Diversified business model including prepared meals, food stalls, and buffet catering

Negative

• Potential dilution of existing shareholders' ownership
• Company will not receive proceeds from the sale of shares by selling shareholders
• Relatively small IPO size may limit initial market impact

Insights

Financial Analyst

Premium Catering's IPO pricing at $4.75 per share, raising $9.5 million, marks a significant milestone for the Singapore-based food service company. The offering structure, with the company selling 1,650,000 shares and existing shareholders offloading 350,000, suggests a balanced approach to capital raising and partial exit for early investors.

The $9.5 million gross proceeds, before deductions, provide PC with capital for potential expansion and operational improvements. However, investors should note that the relatively small offering size may limit liquidity in the stock. The Nasdaq Capital Market listing enhances visibility and could facilitate future capital raises.

Key considerations for investors include:

• PC's focus on the foreign worker market in Singapore, which may offer stability but could also limit growth potential
• The company's diversification into food stalls and buffet catering, which may provide additional revenue streams
• Potential challenges in scaling operations and maintaining margins in the competitive food service industry

Overall, while the IPO provides PC with public market access and growth capital, investors should closely monitor the company's ability to execute its business plan and deliver shareholder value in the competitive food service sector.

Market Research Analyst

Premium Catering's IPO reflects growing investor interest in the food service sector, particularly in markets catering to foreign workers. The $9.5 million raise, while modest, could signal confidence in PC's business model and growth prospects.

Key market trends to consider:

• The foreign worker population in Singapore, a critical driver for PC's core business, which may be influenced by government policies and economic conditions
• Evolving consumer preferences in the food service industry, including increased demand for convenience and variety
• Potential for technological disruption in food delivery and catering services

The company's diversification into food stalls and buffet catering suggests adaptability to changing market conditions. However, investors should be aware of the competitive landscape and potential margin pressures in these segments.

The IPO pricing at $4.75 per share and the relatively small offering size may indicate a cautious approach to valuation. This could provide room for upside if the company executes well, but also reflects the risks associated with a smaller, specialized player in the food service market.

SINGAPORE, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Premium Catering (Holdings) Limited (“PC” or the “Company”) (Nasdaq: PC), a food caterer supplying prepared meals to foreign workers in Singapore as well as operating food stalls and providing buffet catering services, today announced the pricing of its initial public offering (the “Offering”) of an aggregate 2,000,000 ordinary shares at a public offering price of $4.75 per share for total gross proceeds of $9.5 million, before deducting underwriting discounts and offering expenses. The Company is offering 1,650,000 ordinary shares and the selling shareholders are offering in aggregate 350,000 ordinary shares. The Company will not receive any proceeds from any sale of shares by the selling shareholders.

The shares are scheduled to begin trading on the Nasdaq Capital Market on September 25, 2024, under the ticker symbol “PC.” The Offering is expected to close on or about September 26, 2024, subject to customary closing conditions.

Bancroft Capital, LLC is acting as sole underwriter for the Offering.

A registration statement on Form F-1, as amended (File No. 333-279272), was filed with the United States Securities and Exchange Commission (the “SEC”) and was declared effective on September 23, 2024. The offering of the securities is being made only by means of a prospectus. Electronic copies of the final prospectus relating to the Offering may be obtained by visiting the SEC’s website located at http://www.sec.gov or by contacting Bancroft Capital, LLC , 501 Office Center Drive, Suite 130, Fort Washington, PA 19034 , Attention: Jason Diamond or email: investmentbanking@bancroft4vets.com

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Premium Catering (Holdings) Limited

Premium Catering (Holdings) Limited is a certified Halal food caterer specializing in Indian, Bangladesh and Chinese cuisine and has over 11 years of experience in the catering services industry in Singapore. The Group primarily supplies budget prepared meals to foreign construction workers in Singapore. In addition, the Group operates food stalls and provides buffet catering services for private functions as well as ancillary delivery services. Since 2019, the Group has introduced smart incubators where prepared meals are placed in them for collection by the customer. The smart incubators are the Company’s custom-made compartmentalized, heated and insulated food vending lockers which are used to deliver budget prepared meals to customers in a secured, hygienic, contactless manner at a pre-set temperature.

Safe Harbor Statement
This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors,” may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Contact:

Sarah Loh
The Chief Financial Financial Officer
Telephone +65-93801488
sarah.loh@premium-catering.com.sg

FAQ

What is the IPO price for Premium Catering (PC) shares?

Premium Catering (Holdings) has priced its IPO at $4.75 per ordinary share.

How many shares is Premium Catering (PC) offering in its IPO?

The company is offering 1,650,000 ordinary shares, while selling shareholders are offering an additional 350,000 shares, for a total of 2,000,000 shares.

When will Premium Catering (PC) start trading on Nasdaq?

Premium Catering (PC) shares are scheduled to begin trading on the Nasdaq Capital Market on September 25, 2024, under the ticker symbol 'PC'.

What is the expected gross proceeds from Premium Catering's (PC) IPO?

The IPO is expected to raise total gross proceeds of $9.5 million before deducting underwriting discounts and offering expenses.

What services does Premium Catering (PC) provide?

Premium Catering (PC) is a food caterer supplying prepared meals to foreign workers in Singapore, operating food stalls, and providing buffet catering services.