The Placement, which comprises 60,000,000 placement shares (“Placement Shares“) at S$0.20 per share, was approximately 1.5 times oversubscribed. The trading of its shares is expected to commence on a “ready” basis at 9.00 a.m. on 15 November 2024.

Anchor investors for the IPO are Asdew Acquisition Pte Ltd, ICH Capital Pte. Ltd. and K-IX Capital Pte. Ltd. Evolve Capital Advisory Private Limited (“Evolve Capital“) is the Sponsor and Issue Manager for the IPO, while Evolve Capital and Haitong International Securities (Singapore) Pte Ltd are joint placement agents for the IPO.

Goodwill Entertainment is in the business of operating multi-entertainment concepts, comprising a network of family-friendly karaoke facilities with food and beverage (F&B) concepts, performance halls and dance clubs, under the brand names “HaveFun Family Karaoke”, “FATEbyhavefun” and “HaveFun Live Show”.

Evolve Capital’s Managing Partner and Chief Executive Officer, Mr Jerry Chua, commented: “Goodwill Entertainment’s IPO marks a transformative step for the Company to leverage evolving trends across Singapore and Southeast Asia’s entertainment industry. Their innovative multi-entertainment concept, combining family-friendly karaoke facilities with F&B offerings, performance halls, and dance clubs, is well-positioned to capitalise on the rising demand for quality, immersive entertainment in Singapore and across Southeast Asia. With rising disposable incomes and a cultural affinity for karaoke in the region, Goodwill’s expansion plans align well with market trends. We believe their innovative offerings and strategic growth initiatives present an attractive opportunity for investors looking to participate in the rapidly growing entertainment and F&B landscape across the region.”

Mr Vincent Toe, the CEO of ICH Capital Pte. Ltd., one of the anchor investors of the IPO, said: “We’ve invested in Goodwill Entertainment because they’ve identified and addressed a clear gap in the market – the need for quality family-friendly entertainment spaces that bring people together. What particularly impressed us was how they’ve successfully merged entertainment with superior food and beverage offerings, while creating a business platform that adds genuine value to partners who want to access the Singapore, and subsequently, Southeast Asian markets. Their approach is refreshingly practical yet innovative.”

Business Segments

The Group has two main business segments: karaoke lounges with multi-entertainment venues, and live show concepts. The first segment comprises 11 “HaveFun Family Karaoke” outlets across Singapore, offering variety of amenities including private cinemas, pool tables, dart machines, and various board and console games. Some outlets feature performance halls for live events. Additionally, the Group’s flagship outlet at Cineleisure Orchard houses “FATEbyhavefun”, their first dance club, enabling customers to enjoy a full night-out experience transitioning from karaoke to dancing.

The second segment showcases “HaveFun Live Show”, a collaborative multi-entertainment concept with Hezong group, providing up close live performances and state-of-the-art audiovisual equipment giving a full sensory experience to patrons and delivering a cinematic and immersive concert-like experience.

Market Outlook

Looking ahead, the Singapore market continues to show promise. A growing population and increasing monthly disposable incomes are fuelling domestic consumption, creating favourable conditions for the Group’s business to thrive and expand. In particular, Singapore’s population has registered a five-year compound annual growth rate (CAGR) of 1.0%, rising from 5.64 million in 2018 to 5.92 million in 2023¹, while average monthly household income has gained from S$10,099 in 2022 to S$10,869 in 2023². As a result, the Group believes in a sustained demand for afterhours entertainment and retail food services, positioning it well to capitalise on this burgeoning sector.

Use of Proceeds

With this in mind, the Group intends to use the IPO proceeds of approximately S$6.45 million as follows: (i) to grow its business regionally and globally; (ii) broaden its existing business verticals; (iii) for acquisitions, joint ventures and/or strategic partnerships; (iv) to invest in entertainment technologies, and (v) for general working capital requirements.

Business Strategy

To boost its entertainment business, Goodwill Entertainment will grow its footprint in Singapore by opening new outlets, particularly in key neighbourhood regions, with plans for a new outlet. It intends expand into the Southeast Asian region, starting with Malaysia. The Group is also exploring joint ventures and strategic alliances to create synergistic opportunities, as exemplified by the Bugis+ Joint Venture Outlet featuring the “HaveFun Live Show” concept.

Goodwill Entertainment’s Executive Chairman and CEO, Mr Flint Lu, remarked: “Goodwill Entertainment’s listing on SGX marks a pivotal moment for us as we prepare to embark on our next phase of growth. This IPO will enable us to accelerate our expansion plans, enhance our technological capabilities, and further integrate live events into our offerings. We’re excited to invite investors to join us as we continue to innovate and expand, capitalising on the cultural affinity for karaoke and the growing appetite for experiential entertainment across the region. Our goal is to strengthen our position in Singapore while strategically expanding our footprint across South East Asia, bringing our unique blend of entertainment to new markets and audiences.”

Goodwill Entertainment’s Vice Chairman and second-largest shareholder, Mr TJ Thang, who is also the Executive Chairman of SGX-listed Travelite Holdings Ltd, commented: “As a major shareholder, I fully support the company’s IPO plans. Goodwill Entertainment has successfully developed a network of entertainment venues where the blend of karaoke, live performances and quality dining consistently draws families and communities together. Our robust performance to-date shows we’ve got the formula right, and I’m confident about our growth prospects as we continue to meet accelerating demand for multi-faceted entertainment and integrated dining experiences.”