Food Innovators Holdings (FIH), an F&B group that focuses on Japanese cuisines across Asia, has lodged its preliminary offer document for the upcoming initial public offering (IPO) and listing on the Catalist board of the Singapore Exchange S68 (SGX), according to an Aug 30 announcment.
This would be the SGX’s second listing this year, amid a dry spell of listings. This year, only one other company has listed on the exchange — Singapore Institute of Advance Medicine Holdings — while two others that have lodged their prospectus have withdrawn their application: LYC Medicare Singapore and A Wellness Holdings.
Equipped with over a decade of experience in the Japanese F&B industry, FIH currently operates two major business divisions: the restaurant leasing and subleasing business (RLSB), where the group leases restaurant premises from landlords and subleases them to restaurant operators who want to open a restaurant or relocate their existing restaurant operations; and the food retail business (FRB), focusing on establishing, operating and managing restaurants specialising in quality traditional Japanese and Japanese-inspired European cuisines, along with the provision of F&B consulting and operations management services.
As at Aug 19, the group has a total of 214 subleased properties covering 23,004.73 sq m in Japan under the RLSB. Capitalising on its priority access to newly listed properties due to its large database of landlords and restaurant tenants as well as expertise in optimal site selection, the group has consistently maintained property occupancy rates above 99% between the financial year ended Feb 28, 2022 and the financial year ended Feb 29, 2024.
Within Japan, FIH operates under a Business-to-Customer (B2C) model to manage directly-owned restaurants. Outside of Japan, the group runs a Business-to-Business (B2B) model for collaborative ventures with local Japanese restaurant operators, facilitating the international expansion of quality Japanese food brands through an equal operating profit/loss sharing scheme.
In addition, FIH also provides F&B consulting and operations management services under a B2B model, with a focus on helping clients secure optimal site locations, formulating business plans, and introducing them to its network of suppliers and interior designers.
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Under the FRB, the group has a total of 26 restaurants, comprising 12 restaurants in Japan, 10 restaurants in Singapore and four restaurants in Malaysia, and they also operate one bakery café and one central kitchen facility in Malaysia as of Aug 19.
In Singapore, some of the F&B brands that are under the group’s portfolio include Yakitori Yatagarasu, Unagi Man Man, Tendon Kohaku, The Hitsuji Club and more.
The RLSB generates recurring rental spread and the FRB offers scalable revenue streams, collectively yielding significant potential for the group’s topline expansion.
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The IPO proceeds will be used primarily to acquire rights to operate additional themed restaurants of popular anime and other characters in Japan, as well as introduce new Japanese food brands to Singapore and Malaysia. Moreover, the group plans to expand its FRB outside Japan through entry into new collaborations with Japanese restaurant operators.
Kubota Yasuaki, CEO of FIH, says: “Following the Covid-19 economic downturn, Japan’s food service industry has been recovering strongly in the past two years. Key macroeconomic factors, such as increased tourism and rising affluence, coupled with a growing affinity for Japanese culture and changing consumer preferences towards healthy and exotic food, have collectively contributed to the promising growth prospects for Japanese food restaurants.”
“The group’s deep roots in the Japanese F&B industry, coupled with having a celebrity chef as our Chief Culinary Officer, enables us to remain at the forefront of dynamic market trends. With the IPO proceeds, the Group will be able to rapidly scale up its food retail business to take advantage of the industry recovery momentum both domestically and internationally,” adds Yasuaki.
