Sim Leisure Group Ltd., a Malaysian theme parks operator based in Penang, has filed its preliminary prospectus with the Singapore Exchange Ltd (SGX) for a proposed listing on the Catalist board.
The company did not disclose how much it expects to raise, but a Bloomberg article on 10 October 2018 reported that a potential listing could raise S$10 million ($7.2 million) to $12 million. According to the preliminary offer document, some of the proceeds will be used for its first theme park in China.
Sim Leisure plans to invest some the net IPO proceeds to expand its existing theme park operations, including the introduction of indoor spaces. It also plans to expand its network of customers, and explore acquisitions, strategic alliances and joint ventures.
The sponsor and issue manager for the IPO is Zico Capital Pte Ltd while the joint placement managers are RHB Securities Singapore Pte Ltd, and UOB Kay Hian Private Limited.
Sim Leisure Group Ltd is founded by Sim Choo Kheng, who has over 28 years of experience in the theme parks industry. The Group currently operates three theme parks in Penang, namely ESCAPE Adventureplay, ESCAPE Waterplay, and the upcoming ESCAPE Gravityplay.
As per the company’s first-half results ending June 2018, total revenue rose by 135.5 per cent to RM8.45 million from 1HFY 2017 due to increase in ticket price and the number of park visitors. Profits attributable to shareholders rose by almost 600 per cent to RM2.048 million in 1HFY 2018 from the comparable period in 2017.
The group has cash and cash equivalents balance of RM0.765 million as of 30 June 2018 with no significant interest-bearing debt. Its net operating cash flows stood at RM2.715 million as of 1H FY 2018.
The management expects top line to increase in FY 2018 mainly due to the increase in the number of visitors with the opening of the ESCAPE Waterplay in November 2017. It also expects to increase its revenue further with the commencement of operations at ESCAPE Gravityplay in the first half of 2019.