Singapore Food Industries Initial Public Offer

Singapore, Sep 19, 1999

- Singapore Food Industries Initial Public Offer Shares Fully Taken Up

- Major Customer NTUC Fairprice Now A Shareholder After IPO

SembCorp Industries and Singapore Food Industries (SFI) wish to announce that all shares offered at the initial public offering of SFI have been fully taken up.

At the close of the IPO on November 18, 1999, the next largest single shareholder after Singapore Technologies Industrial Corporation (a wholly-owned subsidiary of SembCorp Industries) as at November 19 is NTUC FairPrice Co-Operative, one of SFI's major supermarket customers.

NTUC FairPrice had subscribed for and purchased 15 million shares or 12 per cent of the total Invitation Shares of 125 million. Their shares represent 3 per cent of SFI's enlarged share capital base of 500 million shares.

SFI had obtained prior approval from the Stock Exchange of Singapore to waive the 5 per cent limit on the number of Invitation Shares placed with any single placee in relation to NTUC FairPrice's application.

SFI believes that the subscription of its shares by NTUC FairPrice will further strengthen its strong business relationship with a key customer who accounts for 3 per cent of the company's annual turnover.

Remarked SFI's President, Peter Tay: "I see NTUC FairPrice's purchase of our shares as a sign of their continuing confidence in our products and services. Now with NTUC FairPrice as a significant shareholder, I believe there will be more reason for us to cooperate in introducing innovative product and service ideas into the Singapore market."

SFI supplies NTUC FairPrice with fresh fruits, chilled meats, Western Small Goods under the TENDERFRESH brand, and frozen foods, including its FARMPRIDE brand of breaded and battered food products such as chicken nuggets and chicken drummets.

SFI also manufactures and supplies products such as yam and sweet potato fritters to NTUC FairPrice under the latter's housebrand, The Pasar.
 
Released on November 19, 1999
 
For more information, please contact:
Chow Hung Hoeng (Ms)
Group Corporate Relations
SembCorp Industries
Tel: (65) 7311729
Fax: (65) 7384904
Email: chowhh@sembcorp.com.sg

(Incorporated in Singapore on April 16, 1973)

Invitation in respect of 125,000,000 Vendor Shares of $0.05 each

in the capital of the Company as follows:-
(a) 18,750,000 Offer Shares at $0.78 for each Offer Share by way of public offer; and
(b) 106,250,000 Placement Shares by way of placement, comprising:-
(i) 93,750,000 Placement Shares at $0.78 for each Placement Share; and
(ii) up to 12,500,000 Reserved Shares at $0.78 for each Reserved Share,
payable in full on application.

The Directors of Singapore Technologies Industrial Corporation Ltd (the ""Vendor"") wish to announce that at the close of the Application List at noon on November 18, 1999, there were 57,098 applications for the 18,750,000 Offer Shares available to the public for purchase. In total, these applicants applied for 443,438,000 Offer Shares, with application moneys received amounting to approximately $345.9 million.

Based on the 18,750,000 Offer Shares available to the public for purchase, the offer to the public is approximately 23.7 times subscribed.

To ensure a reasonable spread of shareholders of Singapore Food Industries Limited (""SFI""), the Directors of the Vendor have decided on the following basis of allocation:-

Range of

Offer Shares

Applied for

('000)

Balloting

Ratio

Number of Offer Shares Allocated per Successful Application

('000)

Percentage of Total Number of Offer Shares

Available to the Public (%)

Number of

Successful Applicants

 

 

 

 

 

1

12:50

1

24.83

4,857

2 to 9

12:50

1

29.46

5,763

10 to 49

13:50

2

28.62

2,799

50 to 99

15:50

4

6.11

299

100 to 499

18:50

5

8.95

350

500 to 999

20:50

8

1.35

33

1,000 and above

25:50

12

0.68

11

 

 

 

100.00

14,112

Of the 93,750,000 Placement Shares, 92,940,000 Placement Shares were successfully applied for. Accordingly, the balance of 810,000 Placement Shares were included as Offer Shares for purchase by the public. The spread of placees is as follows:-

Range of Placement Shares Applied for

('000)

Number of Placees

1 to 9

11,335

10 to 49

431

50 to 99

87

100 to 499

69

500 to 999

9

1,000 and above

14

 

11,945

15,000,000 Placement Shares were placed to NTUC Fairprice Co-operative Limited which will be the second largest shareholder of SFI after the Invitation.

The 12,500,000 Reserved Shares have also been fully taken up by employees and business associates of the Group, those who have contributed to the success of the Group and certain charitable organisations. The spread of applicants for the Reserved Shares is as follows:-

Range of Reserved Shares Applied for

('000)

Number of Applicants

1 to 9

1,033

10 to 49

283

50 to 99

25

100 to 499

10

500 to 999

-

1,000 and above

-

 

1,351

SFI's Shares will commence trading on ""ready"" basis on November 22, 1999. There will be NO trading on ""when issued"" basis.

The return of unsuccessful applications using printed Application Forms to the applicants, together with the full amount of the application moneys (without interest or any share of revenue or other benefit arising therefrom), by ordinary post at their own risk, will commence today and is expected to be completed by November 23, 1999. For unsuccessful Electronic Applications, it is expected that the full amount of the application moneys (without interest or any share of revenue or other benefit arising therefrom) will be credited to the applicants' accounts with their Participating Banks (as defined in the Prospectus dated November 11, 1999) within three market days after the close of the Application List.

In respect of partially successful applications, the balance of the application moneys is expected to be refunded (without interest or any share of revenue or other benefit arising therefrom) to the applicants, by ordinary post at their own risk (in the case of applications made using printed Application Forms) or by being automatically credited to the applicants' accounts with their Participating Banks (in the case of Electronic Applications) within 14 days after the close of the Application List.

The Directors of SFI are pleased to advise that CPF members may, with effect from the date on which SFI's Shares are traded on ""ready"" basis as indicated above, use their CPF savings (subject to the 80 per cent. sub-limit) to purchase SFI's Shares as trustee shares under and subject to the requirements of the CPF Investment Scheme.

The Directors of the Vendor and the Directors of SFI wish to thank all applicants who applied for the Offer Shares and the Placement Shares, the relevant authorities and all who have helped in one way or another in SFI's initial public offer, for their support and assistance.

Issued by

Overseas Union Bank Limited

For and on behalf of

Singapore Food Industries Limited and

Singapore Technologies Industrial Corporation Ltd

November 19, 1999

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