Union Gas seeks IPO to expand retail distribution of cooking gas

Jeffrey Tan
Jeffrey Tan7/17/2017 8:0 AM GMT+08  • 3 min read
Union Gas seeks IPO to expand retail distribution of cooking gas
SINGAPORE (July 17): The blue gas cylinders owned by Union Gas Holdings may soon become more ubiquitous. The distributor of liquefied petroleum gas is seeking a listing on the Catalist board of the Singapore Exchange to expand its network. CEO Alexis Teo
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (July 17): The blue gas cylinders owned by Union Gas Holdings may soon become more ubiquitous. The distributor of liquefied petroleum gas is seeking a listing on the Catalist board of the Singapore Exchange to expand its network. CEO Alexis Teo says the company hopes to acquire other local LPG retailers and leverage their customer bases. “This is the fastest way to expand,” she tells The Edge Singapore in an interview.

Union Gas is offering 60 million shares at 25 cents apiece, comprising 30 million new shares and 30 million vendor shares. Only 1.28 million shares are being offered to the public. The remaining 58.72 million shares will be sold by way of placement. Excluding the sale of the vendor shares, the IPO will raise net proceeds of $5.7 million.

The company intends to utilise $4 million of the net proceeds to fund its acquisition plans. The remaining $1.7 million will be used for diversification and general working capital. Union Gas plans to diversify into the business of supplying piped natural gas. This is aimed at customers who operate in the services and manufacturing industries in Singapore. Teo says the company intends to launch this new business by end-1H2018.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.