Memories Group – First to Debut on Singapore Exchange in 2018 — Aspire Financial Freedom

By Don Low

Memories Group is slated to be the first company to debut on the Singapore Exchange. Listing on 5 January 2018 after completing a compliance placement of up to 50 million shares at $0.25 per share, the exercise is a reverse takeover (RTO) of SHC Capital Asia and hence there is no public offering.

The group is engaged principally in three business segments – Experience, Hotels and Services. In a gist, the group is building on providing tourism-related and hospitality services in the fast-growing tourism industry of Myanmar. To give investors some perspective, total tourist expenditure grew from US$534 million in 2012 to almost US$2.2 billion by 2016. According to global travel body World Travel and Tourism Council, Myanmar ranks second out of 184 countries for long-term growth by 2026.

Interestingly, Memories Group’s core segment (experience) is providing hot air balloon services in the tourist hotspot area of Bagan. Countless travel magazines and programmes have featured “Balloons Over Bagan” as a top tourist destination, worthy to be in the bucket list for wanderlusts and avid travelers.

After the RTO, the majority of the proceeds will be used to fund the completion of Pun Hiang Lodge, a 46-room urban resort project. Another portion will be allocated for the purpose of future development of Bagan Land and investment or acquisition of hospitality and tourism assets in Myanmar. The remainder of net proceeds will be used for marketing and developing integrated technology platform or injected into working capital.

Based on the enlarged number of shares post-RTO, implied market capitalisation for Memories Group would be $100.427 million and the implied price-to-book value would be about 2.3 times.