Pet World Nutritions Plans Singapore IPO to Raise up to $100M in 2023

Malaysia's Pet World Nutritions is planning an initial public offering (IPO) in Singapore to raise up to $100 million, according to two sources familiar with the matter. The pet food manufacturer, which makes the ProDiet cat food and ProBalance dog food, is aiming to debut on the Singapore stock exchange by the end of 2023. The company's IPO could be the biggest in Singapore in over a year, giving a boost to the city-state's IPO activity, which only amounted to $68.7 million last year, according to Refinitiv data.

Pet World Nutritions' IPO comes as the pet care market in Southeast Asia continues to grow, driven by increasing disposable income and improving consumer lifestyles. The pet care market in the region is expected to reach $3.08 billion by 2032, up from a record $1.6 billion in 2022, according to market intelligence firm Future Market Insights. Thai pet food maker i-Tail Corp raised $611 million in November 2022 in what was Thailand's second-biggest IPO of the year.

Pet World Nutritions produces over 100,000 tonnes of pet food annually, according to its website, and has markets in Malaysia, Thailand, Indonesia, China, Taiwan, Singapore, and Brunei. The company plans to use the IPO proceeds to fund further business expansion.

The size of the IPO, however, is still under consideration and may change, according to one of the sources. The company has confirmed that it will undertake an IPO but declined to comment on financial details.

The last time Singapore hosted an IPO of more than $100 million was in December 2021, when Digital Core REIT raised $977.35 million. The Pet World Nutritions IPO would be a welcome development for Singapore's IPO market, which has been relatively quiet compared to other markets in the region. The company's IPO could signal renewed interest in the city-state's equity market and encourage other companies to follow suit.