Valuemax Group&rsquo s executive chairman and his wife sold 34.8 million shares at $1.16 each, a 6.5% discount, to a group of investors that include  abrdn Asia, Amova Asset Management Asia, Avanda Investment Management, and ICH Synergrowth Fund.

 

The sale, managed by OCBC, aims to diversify the shareholder base and improve trading liquidity.

ValueMax suffered a cybersecurity incident at an unspecified date after the group&rsquo s IT servers experienced a malware attack. 

 

According to an Oct 15 bourse filing, the group and other external consultants took &ldquo immediate and appropriate actions&rdquo to identify and contain the affected servers. 

 

The group adds that investigations are currently ongoing, and the ValueMax T6I is expected to conduct a &ldquo rigorous&rdquo review of the incident and its IT systems to &ldquo enhance and strengthen&rdquo its cybersecurity infrastructure. 

 

As at Oct 15, the group is not aware of any external leakage of data. 

 

ValueMax says the group has &ldquo further activated its business continuity plan to limit any potential operational disruption to customers&rdquo . 

 

Relevant authorities have also since been alerted about the incident. 

 

The group will provide further updates should there be any other material developments.

 

The trustee-manager of CapitaLand India Trust CY6U (CLINT) has entered into a $50 million sustainability-linked term loan facility agreement with the Bank of East Asia, Singapore branch on Sept 24. 

 

It was not specified in the announcement what the loan agreement would finance. 

 

An event of default would occur under the facility agreement under two conditions. The first is if CapitaLand Investment does not own or ceases to own, directly or indirectly through its wholly-owned subsidiaries, at least 51% of the issued and paid-up capital of the management of CLINT.

 

The second is if CLINT is terminated pursuant to the provisions of the trust deed dated Dec 7, 2004, and or if CLINT&rsquo s manager ceases to be the trustee-manager of CLINT. 

 

The release notes that should any trigger event occur and the manager of CLINT fails to pay the outstanding amount due and payable under the facility agreement, it may trigger cross defaults under other facilities, debt issues and borrowings of CLINT and or its subsidies. 

 

The aggregate level of borrowings which are outstanding and that may be affected is approximately $1,660 million as at Sept 24. 

 

On Sep 2, group executive chairman of ValueMax : T6I +2.22% Yeah Hiang Nam acquired 41,800 shares at S$0.45 per share.

 

This increased his total interest in the pawnbroking, moneylending and retail and trading of gold and jewellery business to 85.20 per cent from 85.19 per cent.

 

The move followed his acquisition of 251,400 shares at the same price between Aug 23 and 27, and purchase of 928,300 shares at an average price of S$0.441 per share between Aug 14 and 19.

Between Aug 14 and 19, ValueMax Group : T6I +2.27% executive chairman Yeah Hiang Nam acquired 928,300 shares at an average price of S$0.441 per share. This increased his total interest in the pawnbroking, moneylending, and retail and trading of gold and jewellery business, from 85.06 per cent to 85.16 per cent. His preceding acquisitions on the open market were in February, with 2,447,200 shares bought at S$0.353 per share.

 

On Aug 13, the group reported that its H1 FY2024 (ended Jun 30) revenue increased 51 per cent from H1 FY2023 to S$229.8 million, driven by gains in retail and trading of jewellery and gold, pawnbroking and moneylending. Cost of sales also rose 57 per cent to S$166.3 million, led by an increase in the cost of goods sold for jewellery and gold. The group&rsquo s H1 FY2024 gross profit rose 39 per cent from H1 FY2023 to S$63.5 million, with net profit increasing 21 per cent to S$35.9 million.

 

ValueMax noted that the restructuring exercise of its Malaysian associated companies was completed in May, and Well Chip Group was listed on the Mainboard of Bursa Malaysia on Jul 23. ValueMax added that it will continue to explore acquisition opportunities and suitable locations to grow its network of pawnshops and retail outlets and grow its moneylending business.

 

Yeah, the founder of the company, is responsible for leading the board&rsquo s focus on strategic matters. He has over 50 years of experience dealing with gold and jewellery, and over 30 years in the pawnbroking industry.

 

He started as a jewellery salesman in 1969, and in 1979 founded Golden Goldsmith Jewellers, which manufactured and wholesaled gold ornaments. In 1989, he also started Ban Soon Pawnshop with other business partners.

 

Kenanga Investment Bank is the principal adviser for the IPO. Together with CGS, Kenanga is also a joint underwriter and joint placement agent for the exercise.

 

[KUALA LUMPUR] Johor-based pawnbroker Well Chip Group, an associate company of Singapore Exchange-listed ValueMax Group, made its debut on Bursa Malaysia&rsquo s main market stock exchange on Tuesday (Jul 23), with its share price rising nearly 50 per cent from the initial public offering (IPO) of RM1.15 per share. Shares of Well Chip opened at RM1.65, representing a 43.5 per cent increase from its IPO price. At its peak, the stock surged by 52 per cent to RM1.75, resulting in a market capitalisation of more than RM1 billion (S$288 million) for the company. At the market close, it ended 49.6 per cent higher at RM1.72, with 107 million shares changing hands.

 

This also marks the third pawnbroking company listed on the Bursa Malaysia, after Evergreen Max Cash Capital in September 2023 and Pappajack, which debuted in April 2022.

 

Singapore-based ValueMax Group, controlled by Yeah Holdings, is the largest shareholder of Well Chip, holding 65.5 per cent of indirect stake through VYN Holdings (50.7 per cent) and VMM Holdings (14.8 per cent).

 

The public tranche of the IPO was oversubscribed by nearly 13 times. The pawnbroker offered 150 million new shares in its IPO, which represented 25 per cent of its enlarged issued share capital.

 

Well Chip had raised RM172.5 million from its IPO, which it plans to use as working capital for its 23 existing pawnshops and as initial capital for opening of another seven pawn shops within the next 24 months &ndash five in Johor and two in Melaka.

 

Pawn king of the south

Established in 2007, Well Chip has a network of 23 pawnshops in Johor, with an estimated market share of 36 per cent, making it the largest pawnbroker in the state.

 

In addition to its pawnbroking business, the company is also involved in the retail and trading of jewellery, operating another four retail outlets in Johor.

 

Analysts are optimistic on Well Chip&rsquo s expansion plan and earnings outlook due to rising gold prices and increasing demand for pawnbroking services from underserved markets in Malaysia.

 

Based on an independent market research report by Protege Associates, the country&rsquo s pawnbroking industry is projected to grow at a compound annual growth rate of 11.4 per cent between 2024 and 2028.

 

The growth is driven by increasing demand for immediate access to funds from underbanked or underserved markets, said Malacca Securities analyst Chiang Fong Kai.

 

He noted that the positive outlook for gold prices bodes well for Well Chip&rsquo s gold trading segment, as the company will be able to sell gold items at a marked-up value.

 

Currently, 64 per cent of Well Chip&rsquo s revenue comes from its retail trading segment, while the remainder is from the pawnbroking business. Profit-wise, earnings from the pawnbroking business accounts for 75 per cent of Well Chip&rsquo s gross profit.

 

RHB Investment Bank analyst Nabil Thoo said the company will benefit from Johor wage earners&rsquo rising income levels, as they are expected to drive the demand for gold as an investment. This is especially so among individuals underserved by conventional financial institutions.

 

In a report, he noted that Well Chip will also benefit from the expertise of its associate company ValueMax Group, as both parties share the ValueMax Pawnbroking System, which allows for improved operational efficiency, translation processing times, and risk management.

They plan to list the investment holding company on Bursa Malaysia on Jul 23

WELL Chip Group has launched its RM172.5 million (S$49.6 million) initial public offering (IPO).

 

Based on the indicative timeline released on Wednesday (Jun 26), the closing of applications for the IPO is slated for Jul 10, while the balloting of applications is set to take place on Jul 12.

 

The IPO shares will be allotted to successful applicants by Jul 19, with Well Chip to list on Bursa Malaysia on Jul 23.

 

Well Chip is offering to issue 150 million ordinary shares in the company at RM1.15 per share.

 

Of the total new ordinary shares to be issued, 30 million will be made available for application by the Malaysian public.

 

Some 45 million shares will be issued by way of a private placement to institutional and selected investors, with 75 million new shares to be placed out to bumiputera investors approved by the Ministry of Investment, Trade and Industry.

 

Well Chip was set up April 2023 as an investment holding company to own shares in ValueMax Group : T6I 0%&rsquo s Malaysian associated companies.

 

It is principally involved in providing pawnbroking services, and in the business of retail and trading of jewellery and gold.

 

The company has 27 operating outlets comprising 23 pawnshops, along with four retail outlets adjacent to its pawnshops.

 

Well Chip&rsquo s board intends to recommend and distribute dividends of at least 35 per cent of its consolidated profit after tax attributable to shareholders for the first three financial years upon listing.

 

The company reported RM203.7 million in revenue for its latest financial year ended Dec 31, 2023, up 28.8 per cent from RM158.1 million in the year prior.

 

Its profit before tax from continuing operations was RM50 million for FY2023, up 35.9 per cent from RM36.8 million in the previous year.

 

Total cash capital as at end-2023 stood at RM307.3 million compared with RM271.7 million as at end-2022.

 

As the group&rsquo s pawnbroking business requires cash capital to draw on for the disbursement of pawn loans to its customers, Well Chip said that such cash capital requirements will increase as it grows its network of pawnshops or disburses more pawn loans. It therefore views its growth and profitability as largely dependent on its access to &ndash and costs associated with &ndash securing additional funding for its cash capital.

 

About 72 per cent of the IPO proceeds or RM124.3 million have been allocated for use as cash capital for the group&rsquo s 23 existing pawnshops. Some 23.2 per cent, or RM40 million, will be used for expansion. The remaining 4.8 per cent of gross proceeds amounting to RM8.2 million will be used for estimated listing expenses.

 

Looking ahead, Well Chip said that it intends to expand its network of pawnshops in Johor, while also penetrating new geographical markets within Malaysia.

 

&ldquo After our first venture into Melaka, we intend to first develop and expand our network of pawnshops within Melaka for a wider market reach by setting up new pawnshops,&rdquo said the company in its IPO prospectus. &ldquo Thereafter, we plan to venture into Negeri Sembilan. We target to achieve our expansion plan to Negeri Sembilan within three years from our listing.&rdquo  

 

ValueMax has launched the fifth series of its 3-month commercial paper (CP) in digital securities under the CP programme on the SDAX platform on June 11.

 

The company expects to raise between $20 million and $50 million from accredited and institutional investors.

 

The digital securities are priced at 4.95% per annum and will mature three months from the date of issuance.

 

Separately, ValueMax T6I -1.27% has also launched the eleventh series of its 3-month CP in digital securities under the CP programme on the ADDX Exchange. 

 

The company expects to raise between $10 million and $25 million from accredited and institutional investors. 

 

The digital securities are also priced at 4.95% per annum and will mature three months from the date of issuance.

ValueMax Group T6I 0.00% has raised $36.67 million from its three-month Series 004 SDAX Issuance and $17.1 million from its three-month Series 010 ADDX Issuance after successfully closing the issuances.

 

The SDAX digital securities will be listed on the SDAX platform on March 28 while the ADDX digital securities will be listed on the ADDX digital platform on April 1.

 

Of the subscribers of the three-month Series 004 SDAX Issuance, ValueMax T6I 0.00% executive director Yeah Lee Ching and CEO Yeah Chia Kai each subscribed for $0.5 million, amounting to 2.73% of the issuance.

 

Among the subscribers of the three-month Series 010 ADDX Issuance, Tan Soon Liang, Yeah Lee Ching and Yeah Chia Wei subscribed for $0.4 million, $0.1 million, and $0.56 million respectively, amounting to 6.20% issuance. Tan is an independent, non-executive director of ValueMax.

Between Feb 21 and Feb 27, ValueMax Group : T6I +2.78% executive chairman Yeah Hiang Nam acquired 2,447,200 shares at an average price of S$0.353 each. This increased his total interest in the business &ndash which is principally engaged in pawnbroking, moneylending, and the retail and trading of gold and jewellery &ndash to 83.88 per cent from 83.58 per cent.

 

On Feb 20, the group reported that its H2 FY23 (ended Dec 31) revenue increased to S$179.2 million, from S$133.6 million in H2 FY22. Revenue from its retail and trading of jewellery and gold, pawnbroking and moneylending businesses increased by S$31.1 million, S$4.9 million, and S$9.6 million, respectively. After the results announcement, the share price of ValueMax Group rallied to S$0.35 during the Feb 21 session, from S$0.315.

 

Yeah is the founder of the company and is responsible for leading the board and focusing it on strategic matters. He oversees the group&rsquo s business, sets the governance standards, and fosters the effectiveness of the board and individual directors. He has more than 50 years of experience dealing with gold and jewellery, and over 30 years in the pawnbroking industry. He started as a jewellery salesman in 1969, and in 1979 founded Golden Goldsmith Jewellers, which manufactured and wholesaled gold ornaments. In 1989, he also started Ban Soon Pawnshop with other business partners.

 

As a result of the revenue growth in FY23, ValueMax Group&rsquo s profit before tax increased to S$63.4 million, from S$53.3 million in FY22.

ALL that glitters is not gold, or so the saying goes. But for pawnbroking chain ValueMax Group : T6I +3.13%, sustainability and overseas opportunities are twin pillars of growth that stand to shine.

 

The mainboard-listed pawnbroker intends to cash in on rising demand for more sustainable jewellery, chief marketing officer and executive director Yeah Lee Ching told The Business Times.

 

At the same time, ValueMax is gearing up for the initial public offering (IPO) of an associated company, Well Chip, on Malaysia&rsquo s main stock exchange, Bursa Malaysia.

 

For now, the IPO is slated to take place in the second quarter of 2024, Yeah said.

 

Well Chip, a company set up to own shares in ValueMax&rsquo s associated companies across the Causeway, has a portfolio of 26 pawnshops in Malaysia.

 

&ldquo Well Chip is currently only operating in the state of Johor, and already, it is the market leader in peninsula Malaysia,&rdquo Yeah said.

&ldquo The opportunity is to grow northwards and expand &ndash Malaysia is a large country, and there are still a lot of opportunities for growth.&rdquo

 

Jewellery manufacturing roots

On the sustainability front, ValueMax has observed greater awareness about the circular economy model of consumption, Yeah noted. This involves refurbishing or recycling existing products to extend their life cycle.

 

&ldquo I think there&rsquo s a global trend for people to be more aware about sustainability, (and) I believe that the demand for pre-owned jewellery will grow,&rdquo she said.

 

Such demand bodes well for ValueMax because of the founder&rsquo s roots in jewellery manufacturing, she added.

 

Prior to establishing his first pawnshop in 1988, her father &ndash ValueMax founder and executive chairman Yeah Hiang Nam &ndash ran a gold jewellery manufacturing business.

 

And while the company now has 47 pawnbroking and retail outlets in Singapore, it has retained its expertise in working on jewellery, the younger Yeah said.

 

&ldquo It&rsquo s our competitive advantage,&rdquo she said. &ldquo We have the capability and know-how on how jewellery is made, (and) on how to refurbish jewellery.&rdquo

 

The retail and trading of jewellery and gold accounted for S$102.8 million, or 67.7 per cent, of the company&rsquo s S$151.8 million in revenue for the six months ended Jun 30, 2023.

 

While the segment posted a S$13.9 million decline from the same period in 2022, it was mostly offset by increased revenue from the company&rsquo s pawnbroking and moneylending arms, which came in at S$4 million and S$8.3 million, respectively.

 

Overall, pawnbroking contributed S$20.3 million in sales in H1 2023, while the moneylending segment accounted for S$28.7 million of revenue.

 

The decline in retail and trading of jewellery and gold in the period was partly due to volatile gold prices.

 

Gold prices rose from around US$1,840 per ounce at the beginning of March 2023 to above US$2,050 per ounce in early May last year.

 

&ldquo Gold price fluctuations will affect our retail sales when a consumer perceives that gold prices are expensive, they tend to reduce their purchases,&rdquo Yeah explained.

 

Yet the same heightened gold prices can lead to more business on the pawnbroking and moneylending fronts, she added.

 

This is especially true with other macroeconomic factors at play, such as inflationary pressures, rising costs and sticky inflation.

 

While those factors have chipped at ValueMax&rsquo s bottom line in the form of higher finance costs and increased rental and manpower costs, they present opportunities too, she noted.

 

&ldquo Borrowing from pawnshops is usually a need-driven kind of activity,&rdquo she said. &ldquo And because of (the) increase in inflation, usually, consumer borrowing is likely to increase.&rdquo

 

At the same time, higher gold prices mean that it is more attractive for consumers to pawn their gold products, as they get more money for the same amount of gold that is pledged as collateral.

 

&ldquo (Pawnbroking and moneylending) will probably continue to grow, but it&rsquo s a bit more difficult to predict,&rdquo said Yeah. &ldquo The demand really depends on how the economy is doing.&rdquo

 

The company is expected to announce its full-year FY2023 results by early March.

PAWNBROKING chain ValueMax Group : T6I 0% has launched three commercial papers on two digital asset exchanges.

 

It is expecting to raise between S$35 million and S$120 million in total from the unsecured short-term debts, all priced at 5 per cent per annum.

 

In two filings to the Singapore Exchange on Thursday (Dec 7), ValueMax announced the launch of a three-month commercial paper in digital securities on the SDAX Exchange and another three-month and a four-month digital commercial papers on the ADDX Exchange.

 

ValueMax expects that it would be able to raise between S$20 million and S$50 million from accredited and institutional investors on the SDAX Exchange.

 

For the two commercial papers on ADDX Exchange, the pawnbroker expects the three-month debt to raise between S$10 million and S$50 million, and the four-month version between S$5 million and S$20 million.

 

The amounts to be raised will be determined by ValueMax&rsquo s board after taking into account demand from investors.

Between Nov 21 and 22, ValueMax Group : T6I +1.49% executive chairman Yeah Hiang Nam acquired 573,800 shares at an average price of S$0.322 per share.

 

This increased his total interest in the business, which is principally engaged in pawnbroking, moneylending, and retail and trading of gold and jewellery, from 83.45 per cent to 83.52 per cent.

 

Yeah is the founder of the company and is responsible for leading the board and focusing it on strategic matters.

 

He oversees the group&rsquo s business, sets the governance standards, and fosters the effectiveness of the board and individual directors.

 

He has over 50 years of experience dealing with gold and jewellery and over 30 years in the pawnbroking industry. He started as a jewellery salesman in 1969 and in 1979 founded Golden Goldsmith Jewellers, which is in the manufacturing and wholesaling of gold ornaments. In 1989, he also started Ban Soon Pawnshop with other business partners.

 

As reported by The Business Times on Nov 16, Well Chip, a company set up to own shares in ValueMax Group&rsquo s Malaysian associated companies, has applied for a listing on the main market of Bursa Malaysia.

 

Back in August, ValueMax Group reported that its H1FY23 (ended Jun 30) overall gross profit increased by S$3.2 million compared with H1FY22, with the gross profit margin increasing from 27.7 per cent to 30.1 per cent.

VALUEMAX : T6I 0%has proposed transferring its shareholding in four Malaysian associated companies from its wholly owned subsidiary, VMM Holdings, to Well Chip Group for a potential listing on Bursa Malaysia.

 

Well Chip is an investment holding company incorporated specifically for the restructuring and proposed listing on the main market of Bursa Malaysia Securities, said ValueMax in a bourse filing on Friday (Nov 10).

 

On Thursday, VMM Holdings and the shareholders of the four associated companies entered into a conditional share sale agreement with Well Chip, for the transfer of the entire issued and paid-up share capital of each of the associated companies to Well Chip.

 

The share swap consideration is RM171.6 million (S$49.7 million), based on the 2022 year-end total net asset value of the four companies, namely SYT Pavilion, Thye Shing Pawnshop, Kedai Emas Well Chip and Kedai Pajak Well Chip.

 

The consideration will be paid via about 450 million new ordinary shares by Well Chip on the deal completion date, which will be seven business days after all relevant precedent conditions have been met, or on another date that all parties agree in writing.

 

After the proposed restructuring, VMM Holdings will hold about 19.8 per cent of the total enlarged number of shares of Well Chip.

 

VYN Holdings, the entity nominated by the four companies&rsquo shareholders to be allotted and issued part of the consideration shares, will hold about 67.6 per cent interest in Well Chip.

 

Well Chip will then be an associated company of ValueMax. Together with its proposed group of companies, it will carry out pawnbroking, retail and trading of jewellery and gold in Malaysia.

 

ValueMax&rsquo s executive chairman Yeah Hiang Nam and chief executive officer Yeah Chia Kai will serve as non-independent, non-executive directors of Well Chip.

 

Yeah Hiang Nam and his wife Tan Hong Yee will be substantial shareholders of Well Chip via their substantial stakes in ValueMax.

 

As a result, ValueMax will not conduct the businesses of pawnbroking and retail trading of gold, jewellery and watches in Malaysia to avoid a conflict of interest, as required by Securities Commission Malaysia.

 

It also noted that the proposed internal restructuring is not expected to affect the group&rsquo s consolidated net tangible asset value and earnings per share for the financial year.

 

Furthermore, there will be no change in the company&rsquo s share capital as a result of the restructuring.