SINGAPORE (July 30): Veteran entrepreneur Wong Ming Kwong, CEO of newly listed engineering firm DLF Holdings, is a picture of calm. But investors who subscribed to the company’s recently launched placement shares are unlikely to be feeling the same way at the moment. From an offer price of 23 cents, which values them at 8.3 times FY2017 earnings, shares in DLF fell nearly a third in its market debut on the Catalist, trading as low as 15.6 cents on July 25. It ended the day at 16.9 cents. On July 26, the second trading day, DLF shares ended at 18.3 cents, up 8.28%.

 DLF, touted as a mechanical and electrical (M&E) engineering play with businesses in Singapore and the Maldives, had issued 18.5 million shares in a placement to 274 placees. There was no public tranche. The exercise raised gross proceeds of $4.26 million, or net proceeds of $2.85 million. This listing is managed by PrimePartners Corporate Finance.

Wong sees the listing as more of an exercise to raise the company’s profile than a fundraiser, at least for a start. “We take this as a branding and positioning platform to develop the business further,” he tells The Edge Singapore in a recent interview. “Up to a certain point in time, I think our business model is going to be different. We just can’t continue using our internal funds to run if we want to do more projects.”

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