Owner of TamJai, SamGor rice noodle restaurants aims for HK$1.4 billion in Hong Kong IPO

Tam Jai International, which owns the popular TamJai and SamGor brands, aims to fund expansion of its restaurant network at home and abroad

Appetite for the shares will be warm, given the popularity of the restaurant chain and a recovery in the stock market, says Louis Tse of Wealthy Securities

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Tam Jai has 156 restaurants, mainly in Hong Kong, and plans to expand its network at home and abroad. Photo: Shutterstock

Published: 8:30pm, 23 Sep 2021Updated: 10:41pm, 23 Sep 2021

Hong Kong restaurant operator Tam Jai International, which owns the popular TamJai and SamGor chains, has launched a HK$1.4 billion (US$180 million) initial public offering as the city’s stock market staged a recovery.

The company, which has 156 restaurants, mainly in Hong Kong, said it would use a major part of the money raised to expand its restaurant network in the city, mainland China, Singapore and new markets like Australia and Japan.

“We want to promote the brands to overseas market,” said Daren Lau Tat-man, chairman and chief executive of Tam Jai.

The company, which specialises in rice noodles, will also use the proceeds to expand the central kitchen systems and refurbish restaurants, Lau said during a press conference on Thursday.

Tam Jai plans to offer 335 million shares, of which 10 per cent will be for the Hong Kong public offering, with an indicative price range of HK$3.33 to HK$4.17, according to a statement on Thursday. The shares will start trading on October 7.

“Taking into account the popularity of the TamJai and SamGor brands, the response to the IPO will be not bad,” said Louis Tse Ming-kwong, managing director of Wealthy Securities.

He expected a recovery in the stock market to boost the appetite of investors too.

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