Homegrown supermarket chain operator Sheng Siong launched its initial public offering (IPO) on Friday.
However, analysts are not too upbeat on the prospects of the stock as growth potential may be limited.
The family-run business has priced its shares at 33 cents apiece and plans to raise S$116 million from the share sale.
It is selling a total of about 351.5 million shares, comprising 201.5 million new shares and 150 million vendor shares.
The firm's three founders - brothers Lim Hock Chee, Lim Hock Eng and Lim Hock Leng - will receive S$48.3 million from the sale of their stakes while the issue of new shares will net S$62.6 million.
Post-listing, the firm is expected to have a market capitalisation of S$442.7 million.
Sheng Siong posted a net profit of S$42.6 million and revenues of S$628.4 million for the fiscal year ended December 2010.
Sheng Siong said it intends to pay out up to 90 per cent of its net profit for this year and 2012 as dividends.
Still, analysts are sceptical on the stock as they see limited growth potential.
Ng Kian Teck, investment analyst at SIAS Research, said: "A bulk of their IPO proceeds is actually used to pay off loans as well as to build up their warehouse facilities, which actually helps in terms of the cost management, but not so much of the top-line strategy."
The public offer will close on August 15 and its shares are expected to start trading on August 17. Read More
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