KOUFU IPO: WILL TOM K SUBSCRIBE?

KOUFU IPO is currently ongoing as you investors may know. The listing of a Kopitiam-related stock is now new to Singapore since the listing of another Kopitiam-related stock in Kimly. So will I subscribe to Koufu IPO?

First, a check on the statistics. Of the IPO, only 6.3 million shares are offered for the public as compared to 90.7 million placement shares. Also, after the listing, Pang Lim, the founder of Koufu, Pang Lim and his wife would continue to be the major substantial shareshilders with 45.8 million shares.


Notwithstanding that it may not be easy for the public to be successfully allotted Koufu stock after application, Koufu IPO does not appeal to me for the following three reasons:

1. The retail coffeeshop and F&B scene is very competitive, I do not recall remembering Koufu as having a substantial competitive edge in the industry or even if it does, it is not apparent to me.

2. There is now more and more online options for food delivery which provides customers with a plethora of food options to choose from at the click of a button

3. It is not easy to rein in the increasing cost of inflation for the food industry: wages, prices of raw materials etc

Thus, I would not subscribe to Koufu IPO. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.


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