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PR Newswire
13-01-2011, 08:41 AM
Jan 13, 2011
Harry's IPO to fund overseas expansion
Firm hopes to raise over $5m and is looking at franchise model in countries like China
By Dhevarajan Devadas
BAR and restaurant operator Harry's is eyeing overseas expansion on the back of an initial public offering (IPO) that is expected to raise $5.28 million.
The company yesterday announced that it is offering 24 million shares at 22 cents apiece in conjunction with its listing on the Singapore Exchange Securities Trading Catalist.
Company chief executive Mohan Mulani said 60 per cent of the firm's IPO proceeds will be channelled into expansion.
He announced that Harry's was looking into adopting a franchise model by the end of this year, which would allow the relatively small company to grow overseas.
'We feel that by opening successful franchises in other countries, we can prove how strong the Harry's brand is,' he said.
Locations being considered include Vietnam and China, and Mr Mulani revealed that he is in talks with a number of interested parties in China. He hopes that the first Harry's bar outside Singapore will open some time next year.
Direct investments and joint ventures both in Singapore and overseas are also on the cards.
Mr Mulani admitted that part of the reason for Harry's wanting to expand into other countries was the saturation of the local market.
'We currently have about 32 bars and seven restaurants in Singapore. I don't think there is much room to grow any further, with regard to this area.'
In May last year, the firm diversified its food-and-beverage domain with the opening of the 22-room Club Hotel in Ann Siang Road.
It also started a catering business in 2008.
Mr Mulani said Harry's is looking into expanding its hotel business locally, and plans to establish new distribution channels for its branded beer by appointing distributors and offering it for sale at selected supermarkets.
This will help it capture a wider market and improve the brand's standing, but Mr Mulani stressed that the bar business will remain the mainstay of the company's operations despite diversification.
ddheva@sph.com.sg
Harry's IPO to fund overseas expansion
Firm hopes to raise over $5m and is looking at franchise model in countries like China
By Dhevarajan Devadas
BAR and restaurant operator Harry's is eyeing overseas expansion on the back of an initial public offering (IPO) that is expected to raise $5.28 million.
The company yesterday announced that it is offering 24 million shares at 22 cents apiece in conjunction with its listing on the Singapore Exchange Securities Trading Catalist.
Company chief executive Mohan Mulani said 60 per cent of the firm's IPO proceeds will be channelled into expansion.
He announced that Harry's was looking into adopting a franchise model by the end of this year, which would allow the relatively small company to grow overseas.
'We feel that by opening successful franchises in other countries, we can prove how strong the Harry's brand is,' he said.
Locations being considered include Vietnam and China, and Mr Mulani revealed that he is in talks with a number of interested parties in China. He hopes that the first Harry's bar outside Singapore will open some time next year.
Direct investments and joint ventures both in Singapore and overseas are also on the cards.
Mr Mulani admitted that part of the reason for Harry's wanting to expand into other countries was the saturation of the local market.
'We currently have about 32 bars and seven restaurants in Singapore. I don't think there is much room to grow any further, with regard to this area.'
In May last year, the firm diversified its food-and-beverage domain with the opening of the 22-room Club Hotel in Ann Siang Road.
It also started a catering business in 2008.
Mr Mulani said Harry's is looking into expanding its hotel business locally, and plans to establish new distribution channels for its branded beer by appointing distributors and offering it for sale at selected supermarkets.
This will help it capture a wider market and improve the brand's standing, but Mr Mulani stressed that the bar business will remain the mainstay of the company's operations despite diversification.
ddheva@sph.com.sg
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