Singapore’s second largest supermarket operator, Sheng Siong (昇菘) Holdings, braved treacherous markets on August 17 to start trading on the Singapore Stock Exchange.

The family-run company, which operates 23 stores in Singapore, announced that the IPO was about 1.3× oversubscribed, increasing the initially-set 351.5 million new shares to 448.7 million shares, to be sold at S$0.33 apiece. An estimated 85.3 million shares were allocated to retail investors, while 363.4 million shares were sold to institutional investors.

The retailer wooed investors with the promise of dividends as high as 90% of net profit after tax for FY2011- 2012, which, considering Sheng Siong’s net profit of S$42.6 million (US$35.36 million) at the end of 2010, might mean that investors can look forward to a hefty payout.

The sale brought the company’s market capitalization to S$442.7 million pre-greenshoe.

The Lim brothers from the firm’s founding family – Hock Chee (林福星), Hock Eng (林福榮), and Hong Leng (林佑龍) – received about S$48.2 million from the sale as they whittle down their stake in the retail chain.

“This is a key milestone for the Sheng Siong Group, and we are excited to list in Singapore. This IPO offers an opportunity for investors to participate in the stable growth story of the Singapore retail industry,” CEO Lim Hock Chee said in a statement. “We are confident that Sheng Siong will remain the preferred grocery chain for many years to come. This is the beginning of an exciting phase for [us,] and we look forward to growing together with our shareholders.”

The stock opened slightly lower than its IPO price at S$0.32, but was the second most actively traded stock on its first day. It has continued to perform strongly since then, and its closing price on August 30 was S$0.53, up by a noteworthy 60.6%.

The funds raised will be used to repay debt, develop and expand its grocery business and operations in Singapore and overseas, and for working capital.

OCBC Bank was the deal manager, underwriter and placement agent .