Sim Leisure files preliminary IPO document with SGX
Penang theme park operator reportedly eyeing S$12mil from listing
KUALA LUMPUR: Theme park operator Sim Leisure Group Ltd and its subsidiaries, which develop and operate theme parks in Penang, have lodged their preliminary offer document for its proposed listing in Singapore.
The amount the firm expects to raise was undisclosed. But according to Bloomberg, founder and chief executive officer Sim Choo Kheng plans to raise around S$10mil to S$12mil through the sale of new and existing shares in the listing, online trading provider IG.com said.
Separately, in a statement to the media, Sim said the group’s business model will move away from the Western mainstream overpriced business model.
“The group’s business model (will) disrupt the mainstream, overpriced business model from the West which pays hefty royalties and requires costly investments in themed structures and mechanical rides,” Sim said.
The plan is to grow its business through joint ventures and strategic alliances, taking into consideration local customs, cultural and climatic factors.
Sim Leisure operates Escape Waterplay and Escape Adventureplay theme parks in Penang. Sim said from his observations of more than 28 years in the industry, most of these theme parks do not succeed because they failed to adapt to the local environment and culture.
Sim Leisure is renowned for its distinctive retro-eco features and attractions reminiscent of traditional play of the old days, a stark contrast to the Western world model in which a roller coaster is usually a salient feature.
It would, instead, offer a “low-tech, highfun” model immersed in a natural setting in order to appeal to the mass market. It would be cost-effective, environmentally-friendl and economically viable, Sim said.
Proceeds from the deal will be used to expand its existing operations and ventures in new regions.
It has identified Asean cities such as Bangkok, Jakarta, Manila and Ho Chi Minh City. It also plans to go into the excitement industry in China.
Sim Leisure made a total turnover of RM$9.68mil in 2017, up from the RM$9.24mil a year ago, helped by the increased ticket prices with the opening of Escape Waterplay, IG.com said.
The group’s Escape theme parks attracted a total of 112,000 visitors last year. It is expecting about 185,000 visitors for the full 12 months of 2018.
Sim Leisure said its directors are planning to recommend an annual dividend of a minimum of 30% of net profit attributable to owners of the firm for the financial years 2019 and 2020, the online trading provider said.
In a media statement yesterday, the theme park operator said it was seeking to list on the Catalist Board of the Singapore Exchange Securities Trading Limited (SGX-ST).
“The group will also use the proposed listing proceeds for capital expenditure for the expansion of the existing theme parks, redeem the outstanding redeemable convertible preference shares that were issued and allotted to Penang Development Corporation, and for working capital and general corporate purposes,” it said.
Sim Leisure’s immediate plans are to “scale the group’s theme park development and operations in sizeable population demographics across China”.
In September this year, Sim Leisure signed a non-binding Memorandum of Understanding (MoU) for the design and operation of a theme park in China’s Linyi City in Shandong province, marking the start of its international foray.