Kingsmen Launches IPO Of 20 Million Shares At S$0.30 Each

Sep 09, 2003

Singapore, September 9, 2003 - Kingsmen Creatives Ltd. ("Kingsmen"), a three-dimensional communications design and production group in the Asia Pacific region, will be launching its Initial Public Offer ("IPO") of 20 million new shares at S$0.30 per share tomorrow (September 10, 2003) for its listing on the SGX-ST Dealing and Automated Quotation System ("SGX Sesdaq").

The Offer

The share offer of 20 million new shares represents 20% of Kingsmen's enlarged share capital. Of this, 3 million new shares will be offered by way of public offer, with the remaining 17 million new shares to be offered by way of placement, comprising :

At S$0.30 per share, Kingsmen is priced at a net price earnings ratio of 7.3 times, based on its historical net earnings for the financial year ended December 31, 2002 ("FY2002").

Use of Proceeds

Kingsmen intends to use the estimated net proceeds of S$4.7 million from its IPO as follows:

Said Mr Benedict Soh, Kingsmen's Co-Founder and Group Managing Director : "Our IPO will enhance our corporate status and enable us to extend our market reach in the region. We see promising opportunities in the Asia Pacific region and the proceeds raised will be channelled to widening our geographical coverage and capabilities. We believe we are well-positioned to strengthen our "Kingsmen" brand in both the local and overseas markets."

An established brand in the exhibitions and interiors industry

Established in 1976, Kingsmen has grown from a local outfit to a regional group with offices in 15 major cities across the Asia Pacific and Middle East regions through its affiliates. The Group designs and produces exhibits for events, tradeshows and even museums and visitor centres. Kingsmen is also reputed for quality interior design works, and has carved a niche in the mid to up-market retail sector. To provide value-added services to clients, the Group offers integrated marketing communications services, enabling Kingsmen to function as a one-stop-shop solutions provider.

Kingsmen's reputation for creative and quality design and production works can be credited to its entrenched design-led, quality and service driven culture. Its ability to offer complete solutions to clients from design to production and marketing promotions is a competitive strength. The Group has a long-standing base of clients including names such as Robinson & Co (S) Pte Ltd, DFS Venture Singapore (Pte) Limited, the Dickson Group, FJ Benjamin Holdings Ltd, Burberry Asia Ltd, Asian Aerospace Pte Ltd and Reed Exhibitions Pte Ltd. Its clients also enjoy overseas support from Kingsmen through its regional network and global connections.

Prospects and Strategies

To fuel the growth of the Group, Kingsmen plans to expand its network of subsidiaries to capitalise on opportunities in new markets. The Group expects the long term prospects of the exhibition industry to remain good. A number of exhibition facilities are being built in Kuala Lumpur, Bangkok, Hong Kong and the PRC. Likewise, museums and visitor centres are also on the rise in Malaysia.

Said Mr Simon Ong, Co-Founder and Group Executive Director of Kingsmen : "We believe we are poised to harness these opportunities given our established brand name, one-stop-shop capabilities and proven expertise in design and production works. To support our growing base of clientele around the globe, we also intend to expand our production facilities in Malaysia and set up production facilities in the PRC. This strategy allows us to take advantage of lower production costs and is in line with our commitment to maintain the highest level of efficiency."

Kingsmen is also optimistic of its growth in the interiors industry, where it already has a niche in the mid to up-market retail sector. Leveraging on its international network and track record, the Group is looking to expand its niche capability in "roll-out management" projects (interior design projects which achieve brand consistency for clients across different countries), which were successfully implemented for Burberry and UOB. Furthermore, the growth of duty free retail sector, in line with the expansion and upgrading of airports in the Asia Pacific region, will augur well for the Group.

"We will also continue to develop and grow our Integrated Marketing Communications division which we believe has good potential. It complements our core skills in communication design and production and saves our clients the hassle of having to coordinate with several parties for their marketing communication needs," commented Mr Soh.



For the last financial year ended FY2002, Kingsmen recorded a net profit of S$3.3 million on revenue of S$60.8 million, of which 55% was from repeat customers.

UOB Asia Limited is appointed as the Manager, Underwriter and Placement Agent for Kingsmen's proposed listing. The issue opens at 9.00 am on September 10, 2003 and will close at 12.00 noon on September 17, 2003.  Trading for the shares is expected to commence at 9.00 a.m. on September 19, 2003.