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.