Aztech Global, the technology unit of Aztech Group, has launched 68.12 million shares priced at $1.28 each through its initial public offering (IPO) on the Mainboard of the Singapore Exchange Securities Trading Limited (SGX-ST) on March 4.

The IPO is expected to raise gross proceeds of some $297 million from the invitation and the issuance and sale of the cornerstone shares.

The invitation comprises a placement of 64.62 million offer shares to investors, including institutional and other investors in Singapore and outside the US, and another 3.5 million offer shares for the public offer.

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The estimated net proceeds, after the estimated expenses, will be around $283.7 million, of which $188.6 million will be due to the company.

Aztech says it intends to use the proceeds primarily for the expansion and enhancement of the group’s manufacturing facilities, as well as expansion of the group’s business including investments, mergers and acquisitions and joint ventures.

Upon the invitation and the issuance of the new cornerstone shares, the number of shares in Aztech will stand at 773.72 million. The market capitalisation of the company will be around $990.4 million.

The company filed its IPO draft prospectus on Feb 24, and revealed its 18 cornerstone investors on the same day.

According to a press release, Aztech’s key products include Internet of things or IoT devices, Data-communication products and LED lighting products supported by its core strength in research and development (R&D), design, engineering and manufacturing.

 

SEE:Aztech Global files draft IPO prospectus, 18 cornerstone investors named

“The group also provides one-stop design and manufacturing services to blue chip customers, technology start-ups and other companies with innovative products,” it states.

The group, which was incorporated in 1986, has an established reputation and a strong track record of over 30 years in the electronics industry and over 25 years in communication and networking technology.

As at Feb 15, Aztech’s outstanding order book stood at around $307.9 million, all of which are expected to be delivered or completed within FY2021.

From FY2017 and FY2019, the group’s EBITDA grew at a compound average growth rate (CAGR) of 80.7% from $19.7 million to $64.3 million. During the same period, the group’s net profits climbed at a CAGR of 106.5% from $11.1 million to $47.2 million.

For the 9MFY2020 ended September, Aztech saw 19.6% lower revenue y-o-y at $262.2 million, though EBITDA stood at similar levels at $44.0 million from $47.2 million in the 9MFY2019.

“We are delighted to share this momentous milestone for Aztech as we prepare to embark on our next stage of growth. Our experience over the past 30 years and proven track record in innovating and introducing products aligned to the evolving electronics industry have put us in a solid position to ride on the robust growth in the IoT, Data-

communications and LED lighting industries,” says Aztech’s executive chairman and CEO Michael Mun.

“We have transformed from an Original Equipment Manufacturer (OEM) player into a full-fledged manufacturer, providing one-stop design and manufacturing services to global blue chip customers. Our resilient business model with globally diversified sales channels for our products and services have reaped excellent results as seen from our track record of profitability,” he adds.

“We would like to share our growth journey with investors to participate in our growing and resilient business, to further solidify and strengthen our presence in the technology industry, both locally and abroad.”

The public offer will close at 12pm on March 10. The listing and trading of Aztech’s shares is expected to commence at 9am on March 12.

UOB and Maybank Kim Eng Securities are the joint issue managers for the invitation.