Bullion bets and China stores halved Soo Kee — founders bought it back at 15 cents

Soo Kee Jewellery grew out of a 700 sq ft shop in Bedok Central that the Lim family opened in 1991 into more than 60 stores across Singapore and Malaysia, run under the Soo Kee, SK Jewellery and Love & Co brands. The group listed on the Singapore Exchange's Catalist board in 2015 at 30 cents a share — a market value of about S$168 million.

After the listing it piled on side ventures: a 70%-owned gold-trading unit (SK Bullion), a crypto-currency payments tie-up signed in January 2019 and dropped in March, and a push into China — two Shenzhen stores in 2018 and Chongqing and Chengdu flagship stores in 2019. Mall rents were rising while the core retail business slowed: rent expense grew 8.3% to S$21.56 million in FY2018 even as revenue fell.

SK Bullion was shut in May 2019 and liquidated that August. Revenue fell 46% in the third quarter of 2019 and 44% in the first half of 2020 as COVID froze jewellery sales. With the shares at 8.8 cents, the founders offered 15 cents a share on 2 September 2020 to take the company private — valuing it at about S$84 million, half the 2015 listing value. The offer closed on 16 October with 97.8% valid acceptances, and SGX-ST approved the delisting on 13 November 2020.