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Lum Chang Creations (LCC) IPO-ed at 25cents a few months back. And at last close, it has doubled from IPO price.
Some snippets from the IPO prospectus as below (in italics):
Our Group was founded in 2018 with the incorporation of LC Interior on 1 February 2018, as a specialist interior contracting fi rm focused on conservation and restorations works as well as A&A works and to spearhead the interior fit-out business of Lum Chang Holdings, our holding company. From 2018 to 2021, LC Interior secured several projects for conservation and restoration works, interior fit-out works, and A&A works in Singapore, including notable projects such as Marina Bay Sands Theatre, Black Tap Craft Burgers & Beer at Marina Bay Sands, St James Power Station and one of the largest shopping malls in Singapore
Subsequently, on 30 August 2022, LC Interior entered into a joint venture agreement with Brandsbridge and Mr. Victor Syn, the director of Brandsbridge (the “Brandsbridge JVA”), and incorporated LC Brandsbridge in Singapore. At that time, Brandsbridge was a reputable interior fit-out specialist in the retail segment. Subsequently in August 2023, LC Decor was incorporated and wholly owned by LC Interior. LC Decor plans to provide renovation contracting services for high-end landed residential properties in Singapore. In May 2024, LC Brandsbridge incorporated Quintessential Builder in Singapore as a joint venture with an unrelated third party, with LC Brandsbridge holding 70.0% of the issued and paid-up share capital of Quintessential Builder. Quintessential Builder manufactures wood furniture and fixtures to complement LC Brandsbridge’s business in Singapore.
Our position as market leader is further supported by our estimated market share. Based on the Independent Market Report, the market size of the urban revitalisation specialist industry in 2024 is estimated to be between S$380.0 million and S$450.0 million in 2024, and the market share of our Group in the urban revitalisation specialist industry is estimated to be between 14.4% to 17.0%.
Some quick thoughts:
(1) LCC is relatively new, having only started out in 2018. There are some RPT with Lum Chang Group for AA/interior fit out, but it is beneficial and synergistic. And it will continue to keep growing as parent Lum Chang uses LCC's services for their own contract book.
(2) LCC paid out 5mil dividend in 2025 before IPO and raised 7mil from IPO proceeds. From the BS, it has very little to negligible working capital (due to its business model of using sub contractors and collecting plenty of deposits before they start work) and so that probably explains why it never really need the IPO money. Nonetheless to their credit, they are paying out another 6.9mil (2.2cents/share) for FY25 final dividend and OPMIs will benefit from this too.
(3) Due to its JV with Brandsbridge, there is some overlap with other listed well known companies like Pico Far East/Kingsmen Creatives. The latter two companies have a bigger portion of "recurring businesses" like exhibitions/events but LCC looks to be largely project based. When your revenue is more project based, you will rise much higher in a rising tide (and vice versa). Nonetheless, their cost structure of using subcontractors means relatively small fixed costs and so there is much operating leverage in both ways too.
IPO Prospectus: https://links.sgx.com/1.0.0/ipo-prospectus/3418
AR25: https://links.sgx.com/FileOpen/1.%20LCC%...eID=863296
Some snippets from the IPO prospectus as below (in italics):
Our Group was founded in 2018 with the incorporation of LC Interior on 1 February 2018, as a specialist interior contracting fi rm focused on conservation and restorations works as well as A&A works and to spearhead the interior fit-out business of Lum Chang Holdings, our holding company. From 2018 to 2021, LC Interior secured several projects for conservation and restoration works, interior fit-out works, and A&A works in Singapore, including notable projects such as Marina Bay Sands Theatre, Black Tap Craft Burgers & Beer at Marina Bay Sands, St James Power Station and one of the largest shopping malls in Singapore
Subsequently, on 30 August 2022, LC Interior entered into a joint venture agreement with Brandsbridge and Mr. Victor Syn, the director of Brandsbridge (the “Brandsbridge JVA”), and incorporated LC Brandsbridge in Singapore. At that time, Brandsbridge was a reputable interior fit-out specialist in the retail segment. Subsequently in August 2023, LC Decor was incorporated and wholly owned by LC Interior. LC Decor plans to provide renovation contracting services for high-end landed residential properties in Singapore. In May 2024, LC Brandsbridge incorporated Quintessential Builder in Singapore as a joint venture with an unrelated third party, with LC Brandsbridge holding 70.0% of the issued and paid-up share capital of Quintessential Builder. Quintessential Builder manufactures wood furniture and fixtures to complement LC Brandsbridge’s business in Singapore.
Our position as market leader is further supported by our estimated market share. Based on the Independent Market Report, the market size of the urban revitalisation specialist industry in 2024 is estimated to be between S$380.0 million and S$450.0 million in 2024, and the market share of our Group in the urban revitalisation specialist industry is estimated to be between 14.4% to 17.0%.
Some quick thoughts:
(1) LCC is relatively new, having only started out in 2018. There are some RPT with Lum Chang Group for AA/interior fit out, but it is beneficial and synergistic. And it will continue to keep growing as parent Lum Chang uses LCC's services for their own contract book.
(2) LCC paid out 5mil dividend in 2025 before IPO and raised 7mil from IPO proceeds. From the BS, it has very little to negligible working capital (due to its business model of using sub contractors and collecting plenty of deposits before they start work) and so that probably explains why it never really need the IPO money. Nonetheless to their credit, they are paying out another 6.9mil (2.2cents/share) for FY25 final dividend and OPMIs will benefit from this too.
(3) Due to its JV with Brandsbridge, there is some overlap with other listed well known companies like Pico Far East/Kingsmen Creatives. The latter two companies have a bigger portion of "recurring businesses" like exhibitions/events but LCC looks to be largely project based. When your revenue is more project based, you will rise much higher in a rising tide (and vice versa). Nonetheless, their cost structure of using subcontractors means relatively small fixed costs and so there is much operating leverage in both ways too.
IPO Prospectus: https://links.sgx.com/1.0.0/ipo-prospectus/3418
AR25: https://links.sgx.com/FileOpen/1.%20LCC%...eID=863296
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.