The festive period over the last few weeks were even more festive for some companies as they pushed for a listing on the Singapore Exchange (SGX) during then. In the last two weeks of 2021, four companies filed their prospectus for initial public offerings (IPO), while two companies got their go ahead from SGX for a SPAC listing.
LS 2 Holdings
Firstly, just a day before Christmas Eve (Dec 23, 2021), LS 2 Holdings submitted its preliminary offer document for a Catalist listing. The company incorporated and based in Singapore is an integrated environmental services provider, specialising in cleaning services. It also provides pest control and waste management services.
The group leverages on its decades of experience, network of subcontractors, well-trained workforce of about 2,000 workers and adopted technologies to provide one-stop solutions to meet the environmental needs of its customers. Its principal business is cleaning services and our operations are based in Singapore.
In its audited FY2020 ended December 2020, earnings came in at $7.3 million, a large surge from FY2019’s $1.0 million, as revenue grew to $54.6 million in FY2020 from $49.0 million in FY2019. The revenue growth was attributed to new contracts secured from a new customer whereby works were completed within the financial year, as well as several work completed for contracts secured in FY2019.
In FY2020, the group recorded a net cash provided by operating activities of $10.9 million, compared to net cash used of $1.1 million.
With a listing on the Catalist Board, the group intends to fund proceeds for its business expansion and working capital.
RHT Capital is the issue manager and full sponsor, while Soochow CSSD Capital is the placement agent.
Alpina Holdings, a Singapore-based contractor specialising in providing integrated building services (IBS), mechanical and engineering (M&E) engineering services and additions and alterations (A&A) works, on Dec 30, 2021, lodged its prospectus for a Catalist listing.
The group intends to raise proceeds to fund its business expansion, strengthen and accelerate the extension of its integrated facilities management (IFM) services, as well as for general working capital.
In its audited FY2020 ended December 2020, earnings came in at $5.0 million, higher than $2.6 million in FY2019, despite revenue dropping from $43.1 million in FY2019 to $37.9 million in FY2020, mainly due to a decrease in revenue from the group’s IBS and A&A business segments, offset by an increase in revenue from our M&E business segment. The reason for the increase in earnings in FY2020 was due to the Covid-19 safe first-based support grant received in FY2020 from the government.
UOB is the sponsor, issue manager and placement agent.
iWOW Technology, which stands for inspiring the World of Wireless, has on Dec 30, 2021, lodged its prospectus for a Catalist listing. The technology provider specialising in integrated wireless IoT solutions as a service is intending to list to raise proceeds to enlarge its customer base, expand its market reach, enhance research and solution development activities and expand its business through partnerships and investments.
Currently, iWOW provides four key solutions to its customers. A key product includes the white oval shaped trace together tokens that are in widespread use. A second important product is iWOW’s smart metering solutions to enable remote monitoring of utilities, providing full transparency and insights into energy and water consumption within buildings. Temasek-linked companies are customers for iWOW’s smart metering solutions.
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The company’s Alarm Alert System is a wireless emergency distress system that caters to the elderly, which is a rising demographic across East Asia. The fourth product is an Electronic Monitoring System to monitor ex-offenders and accused persons while they are out on bail or have been released under a remission order.
In its latest audited FY2021 ended March 2021, the group recorded earnings of $3.7 million, an increase from $22,000 in FY2020, as revenue for FY2021 came in at $26.4 million from $4.4 million in FY2020.
The five-fold increase in revenue was mainly due to revenue derived from the sale of TraceTogether Tokens for the Smart City Solutions segment. Higher recurring revenue from EMS as well as new contribution from the AAS project also contributed to the growth of the IoT-as-a-Service segment.
Evolve Capital is the sponsor and issue manager, while Futu Singapore is the underwriter and placement agent.
On the other hand, Koh Brothers Eco Engineering is finally listing its 80%-held indirect subsidiary Oiltek International on the Catalist Board. Koh Brother on Jan 23, 2020, first announced its interest to spin-off Oiltek and the preliminary offer document was finally lodged on Dec 31, 2021.
Koh Brothers Group and Penta-Ocean Construction are the controlling shareholders of Koh Brothers Eco Engineering with stakes of 54.3% and 28.8%, respectively.
Oiltek is Malaysia-based integrated process technology and renewable energy solutions provider in the vegetable oils industry. The company provides solutions that cater to all types of vegetable oils, including palm oil, soybean oil and rapeseed oil, which are some of the major agricultural commodities in the world.
In its latest audited FY2020 ended December 2020, earnings were 44.1% higher y-o-y at RM8.4 million as revenue for FY2021 was RM87.5 million compared to RM80.2 million in FY2020. The revenue increment was due to an increase in the Renewable Energy segment and the Product Sales and Trading segment. This was partially offset by a decrease in the Edible & Non-Edible Oil Refinery segment.
With this listing, the group intends to fund its working capital to expand business operations through securing more projects and projects of a larger scale, as well as expand its business through investments and partnerships.
SAC Capital is the sponsor, issue manager, underwriter and placement agent.
On Christmas Eve (Dec 24, 2021), Temasek’s Vertex Venture received its Christmas present from SGX – a nod from the exchange to list on the Mainboard via a special purpose acquisition company (SPAC).
Vertex is the first company in Singapore to get the go ahead for a SPAC listing.
Shortly after Vertex got its go ahead, global alternative asset manager Tikehau Capital and its partner Financière Agache, the family office of LVMH Group controlling shareholder Bernard Arnault, got its approval on Dec 30, 2021.
The sponsor group has incorporated Pegasus Asia, a special purpose acquisition company (SPAC). The listing is subject to certain conditions as well as the broader market environment.
Tikehau and Financière Agache plan to invest $62 million in the SPAC through the subscription of units and an unconditional forward purchase agreement. This is in addition to the sponsor’s initial contribution of up to $10 million of “at-risk” capital by purchasing warrants in the private placement.
Temasek is also an shareholder of Tikehau.
Besides Tikehau and Vertex, parties reportedly keen to list a SPAC include buyout firm Novo Tellus.
Photo: The Edge Singapore/ Albert Chua