Nanofilm Technologies International Limited and three shareholders are seeking to raise $470 million in a Singapore initial public offering, according to terms of the deal obtained by Bloomberg News.
The shares are being offered at $2.59 each.
The selling shareholders are executive chairman Shi Xu, CEO Lee Liang Huang and Wei Hao. Some 42.5% of the offer consists of new shares and 57.5% are existing shares.
The company has secured 13 cornerstone investors including Aberdeen Standard Investments (Asia), AIA Investment Management, Credit Suisse AG, Lion Global Investors, Fullerton Fund Management, Nikko Asset Management Asia, JPMorgan Asset Management (Singapore) and Venezio Investments (an indirect wholly-owned subsidiary of Temasek), who have agreed to subscribe for some 104.3 million shares amounting to $270 million.
The proceeds are to be used for capital expenditure (capex) on the development and building of new machinery for its advanced materials business unit and purchase of new machinery for nanofabrication business unit, R&D and engineering for entry into new end industries and new areas and/or products in existing business markets, construction, refurbishment, and renovation of new and existing production facilities, as well as general corporate and working capital purposes.
Credit Suisse and Citi are among the arrangers of the deal.
On Oct 15, Nanofilm was in talks with Singapore state-owned investor Temasek Holding and Malaysia’s pension fund EPF to become cornerstone investors in its initial public offering in Singapore.