MindChamps PreSchool IPO – The Largest Operator and Franchisor of Premium Range PreSchool Centres In Singapore

MindChamps PreSchool Limited launched its IPO of 28,449,600 Placement Shares and 2,000,000 Public Offer Shares (total 30,449,600) at S$0.83 per share last Friday (18-Nov). IPO application will closed on 22-Nov-17 12noon. Prospectus can be found here.


According to the cover page of its prospectus, MindChamps PreSchool Limited is the



According to the 2nd page of its prospectus –

“Managed by a strong and experienced management team, we have the largest number of centres amongst players in the premium range category of preschool centres in Singapore, and have established ourselves as the market share leader with a market share of 38.5%.”


These 2 points are repeatedly reminded more than ‘n’ times throughout the prospectus.


According to the footnote

  • definition of “Premium Range” is defined in the Independent Market Research Report as preschool child care centres that charge each student S$1,700 and above (base on non-promotional rates and before GST and government subsidies) per month for a 5-day week or 5.5-day week full-day programme. 
  • Market share of 38.5%” is as at 15-Sep-2017, according to the Independent Market Research Report. 


The ‘Independent Market Research Report’ is prepared by Independent Market Research Consultant – Converging Knowledge Private Limited.



Refer to Appendix D of prospectus document (page. D-57) –

There are approximately 91 private preschool child care centres serving the premium segment. Out of the 12 major private preschool child care centre chains identified in Table 4, only eight operate in the premium segment. In terms of the number of outlets, MindChamps has the largest number of centres (35) amongst the eight major players identified for the premium segment.


According to the latest data as of 20-Nov downloaded from the same link as indicated in the appendix (by searching for the list of child care full day service centres available for a 5 years old child), there are more than 1400 child care centres available and following is the distribution on no. of child care centres vs the range of monthly charge.

Singapore Child Care Service Price Range
Singapore Child Care Services Price Range as of 20 Nov 2017 (source: https://www.childcarelink.gov.sg)



The latest shows that there are 34 centres named with ‘MindChamps‘ in the list. Out of the 34 centres, 3 of them charge monthly rate in the range of S$1700-1799 while the rest of 31 charge monthly rate of S$1800-1899.


Looking at the data, you’ll be amused by the fact that the definition of ‘premium‘ is conveniently(?) / coincidentally(?) with monthly fee range of ‘$1700 and above‘ in order for MindChamps to fall within the ‘premium range’ and labelled as one of the ‘premium range preschool operators’.



According to the Appendix D of prospectus document (page. D-61) –

Based on the 91 private premium preschool child care centres, MindChamps, which has 35 centres operating currently, has market share of 38.5%.


It again surprised me as the ‘market share’ is defined by simply the ‘no. of centres’ it operates, while it would be much more intuitive and logical to define the ‘market share’ by total no. of enrolments or such, with the capacity for each of the centres and whether the capacity of the centre is fully filled, if not by revenue?


Furthermore, despite the declaration of belonging to the group of premium range preschool by changing the ‘premium rate’ above $1700 per month, according to page 74 of the prospectus, the ‘actual’ average school fee per student per month for 6M2017 is only $1655! 


MindChamps COCO centres, average students, average fees.
MindChamps COCO centres, average students, average fees.


and this is because…

“The average school fee per student per month is exclusive of GST and takes into consideration promotions and discounts given to parents as well as half-day students who are paying approximately S$200 lower than full-day school fees.”


… so if the actual average school fee per student per month is not above the benchmark of ‘$1700 premium range’, should it still be self labelled as ‘premium operator’?



Smoking should not be allowed within the pre-school premises I thought.






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