SINGAPORE (Feb 21): Total solution water treatment company, Memiontec, has today launched its initial public offering (IPO) on the Catalist Board of Singapore Exchange.
The group which provides water and wastewater management services across Singapore, Indonesia and China, will be placing about 33.5 million shares at 22.5 cents each today to raise about $5.8 million in net proceeds.
The placement represents approximately 15.2% of the enlarged share capital of 220,257,000 shares of Memiontec and based on the placement price, Memiontec’s market capitalisation will be approximately $49.6 million post-Placement.
The placement will close at 12.00pm on Mar 3 and shares in Memiontec are expected to commence trading at 9.00am on Mar 5.
ZICO Capital is the sponsor and issue manager, while UOB Kay Hian is the placement agent for this IPO.
Post placement, executive chairman and CEO, Tay Kiat Seng, along with his wife Soelistyo Dewi Soegiharto who is also the managing director, will together directly and indirectly hold about 81.5% of Memiontec share capital and remain as the controlling shareholders. Tay and his wife are both also founders of the company.
The group intends to use its net proceeds of approximately $5.8 million to invest in build-own-operate-transfer (BOOT) projects and M&A, expand the sales and distribution of its systems and equipment business and for general working capital purposes.
Over the past three financial years from FY16 to FY18, ended Dec 31, Memiontec’s revenue grew approximately 23.4% to $24.46 million in FY18 from $16.07 million in FY16 due to increased revenue contributions from the total solutions with engineering, procurement and construction (TSEPC) services; operation, maintenance and service of water and wastewater treatment plants (OMS); as well as trading segments.
As a result, profit for the year attributable to owners of the Company increased more than fourfold over the same period from $1.10 million in FY2016 to $4.59 million in FY18.
The group’s directors intend to distribute dividends of at least 20% for FY19 and at least 25% for FY20.
“Memiontec has come a long way since its days as an engineering, procurement and construction (EPC) project-focused company in the wastewater treatment industry and today, we are a one-stop total solution provider with a diversified revenue stream from various business segments across Asia. This IPO will enable us to continue expanding and extending our businesses in existing markets, as well as strengthen our possibilities of venturing into new geographical markets or even exploring merger and acquisition opportunities in the longer-term,” says Tay.