Cafe Deco Group Ltd IPO - What You Need to Know

Hey there! Thinking about putting some money into the Cafe Deco Group IPO? That's awesome! It's smart to do your homework before jumping in. Think of this as a chat with a friend about what this company is all about and what you should consider. We'll break it down into simple pieces.

A quick heads-up: The information we're looking at is from a preliminary filing with the U.S. Securities and Exchange Commission, dated December 29, 2025. This means the details are still subject to change before the actual IPO happens.

1. What does this company actually do? (in plain English)

Imagine a company that owns and runs a whole bunch of your favorite places to eat! That's Cafe Deco Group. They're basically a big restaurant and catering company. They have everything from casual eateries where you can grab a quick bite, to fancier restaurants for special occasions, and even places that serve specific types of food like Italian, Japanese, or local favorites. They also do catering for events, so if you've ever been to a party with great food, it might have been theirs! They operate in places like Hong Kong, Macau, and sometimes beyond. The company is incorporated in the Cayman Islands, but its main offices are in Hong Kong.

2. How do they make money and are they growing?

They make money pretty straightforwardly: every time someone eats at one of their restaurants, orders a drink, or uses their catering service, that's revenue for them. It's like a cash register ringing every time a customer pays their bill.

As for growth, you'll want to look at a few things:

• Are they opening new restaurants? More locations usually mean more potential customers.
• Are their existing restaurants getting more popular? This means more people are visiting and spending money at their current spots.
• Are they expanding into new areas or types of food? This shows they're trying to reach more customers or tap into new trends.
• Are their sales going up year after year? This is a key indicator of a healthy, growing business.

3. What will they do with the money from this IPO?

So, why are they asking for our money? Companies usually go public to raise a big chunk of cash for specific reasons. For Cafe Deco Group, they'll likely use the money for things like:

• Opening new restaurants: This is a common one for restaurant groups – expanding their footprint.
• Renovating existing restaurants: Keeping their current places fresh and appealing to customers.
• Paying off debts: If they owe money, using IPO funds can make them financially stronger.
• Investing in technology: Maybe new ordering systems, kitchen equipment, or better online presence.
• Working capital: Just having extra cash on hand for day-to-day operations, unexpected costs, or future opportunities.

The official IPO documents will spell out exactly how they plan to use the funds, usually with percentages for each category.

4. What are the main risks I should worry about?

Okay, but what could go wrong? Every investment has risks, and for a restaurant group like this, here are a few big ones:

• Economic downturns: If the economy slows down, people tend to eat out less, which hurts their sales.
• Rising costs: The price of food ingredients, rent, and staff wages can go up, eating into their profits.
• Competition: The restaurant business is super competitive. New restaurants pop up all the time, and people's tastes change.
• Health scares or pandemics: We've seen how things like COVID-19 can drastically impact the dining industry.
• Changing tastes: What's popular today might not be tomorrow. They need to keep up with food trends.
• Staffing issues: Finding and keeping good chefs and service staff can be tough.
• Reputation: A bad review or a food safety incident can quickly damage their brand.

5. How do they compare to competitors I might know?

You know how there are big restaurant groups like Maxim's Group or other well-known casual dining chains? Cafe Deco is in that same ballpark, operating a portfolio of different restaurant brands.

What makes them stand out (or not) compared to others might be:

• Their specific restaurant brands: Do they have unique concepts or popular chains?
• Their focus: Are they more fine dining, casual, or a mix?
• Their geographic reach: Are they mostly local, or do they have a wider presence?
• Their financial performance: Are they growing faster or slower than their rivals?

You'd want to look at how their sales, profits, and number of locations stack up against similar companies you might be familiar with.

6. Who's running the company?

Who's steering this ship? It's important to know who's in charge. You'll want to look at the key people:

• The CEO (Chief Executive Officer): The main boss.
• The founders: The people who started the company.
• The Board of Directors: A group of experienced individuals who oversee the company.

The filing also tells us that Mr. Chow Vee Tsung Oscar, who is currently the Director and Chairman of the Board, will be a 'Controlling Shareholder' right after the IPO. This means he'll own about 60.92% of the company's shares and voting power. In simple terms, he'll have a very strong say in how the company is run and what decisions are made.

Look for people with a strong track record in the restaurant or hospitality industry. Do they have a lot of experience? Have they successfully grown other businesses? Their leadership can make a big difference.

7. Where will it trade and under what symbol?

This IPO is for listing on a U.S. stock exchange! Cafe Deco Group has applied to list its shares on either the NYSE American LLC or the Nasdaq Capital Market. The ticker symbol (their unique ID on the stock market) is still to be announced. It's important to know that this offering is conditional on them actually getting approved to list on one of these exchanges. If they don't get approved, the IPO won't happen.

8. How many shares and what price range?

The company plans to offer 1,800,000 Ordinary Shares to the public. They expect the initial price per share to be between $6 and $8.

• Number of shares: This tells you how much of the company is being sold to new investors.
• Price range: This is the initial window where they expect the shares to be priced. The final IPO price will be set within or sometimes even outside this range, depending on investor demand.

This information helps you understand the initial value of the company and how much you might need to invest per share.

Remember, this is just a starting point. Always read the official IPO prospectus (it's a long document, but important sections are usually summarized) and consider talking to a financial advisor before making any investment decisions. Good luck!