Samurai 2K Aerosol, best IPO performer this year, raising $10 mil in private placement to fund expansion

Samurai 2K Aerosol, best IPO performer this year, raising $10 mil in private placement to fund expansion

PC Lee
27/11/17, 08:05 pm

SINGAPORE (Nov 27): Samurai 2K Aerosol, the best performing IPO of 2017, is raising money for further growth.

A company that sells spray paints, Samurai 2K Aerosol is placing out 10 million new shares at $1.008 each to raise net proceeds of $9.6 million for business development and expansion. UOB Kay Hian Private has been appointed the placement agent.

Samurai 2k Aerosol sold shares in an IPO at 20 cents each in January, making it the first listing of the year. The stock closed on Monday at $1.12, up 460% since the IPO.

See: Getting in on the IPO frenzy

The placement price represents a discount of 9.9% to the volume weighted average price of $1.1191 per share for all trades done Nov 22, the last full market day before a trading halt of the shares was called on Nov 23 for the placement announcement.

Upon completion of the proposed placement, the new shares represent 9.1% of the enlarged issued share capital of the company.

According to The Edge Singapore cover story this week, the company, founded by CEO Ong Yoke En, has created its own aerosol canister with two chambers.

When used for the first time, the smaller chamber breaks open, allowing certain additives to mix with the paint and providing a hard-wearing protective coating to the surface that is painted.

In the first half ended June 30, Samurai 2k Aerosol saw earnings jump more than fourfold to MYR 6.4 million ($2.1 million) from a year ago. This came on the back of a 101.6% increase in revenue to MYR 34.5 million.

The growth in revenue was especially pronounced in Indonesia, which increased by nearly tripled to MYR 19.8 million, overtaking its home market of Malaysia, which grew at a slower 32.2% to MYR 11.5 million.

The company attributed the growth to a range of marketing activities.

To find out more about Samurai 2K Aerosol and how well the other stocks which listed this year have performed, get your copy of The Edge Singapore.

Subscribe to The Edge at

Treasure hunting

British collector and expert Harry Fane talks about what it takes to be the world’s foremost authority on vintage Cartier creations and how to spot a good investment buy at his Vintage Cartier Tank watch exhibition at Dover Street Market Singapore (May 20): Harry Fane’s love affair with Cartier began at the tender age of 17. It was the 1970s and his best friend showed up one day, decked out in two must-have items of the era: a pair of Gucci shoes with a gold buckle — “the height of fashion at the time” — and a Cartier watch. “I remember going, ‘Gosh, I really want both of....

Next stop: The interchange of public and private good

SINGAPORE (May 20): Two-minute intervals between trains. Fewer breakdowns. Clean, new buses running at a higher frequency. Bright LED screens displaying details of stops on both buses and trains. To many commuters who are enjoying these benefits, the meltdown of Singapore’s transport system in December 2011, and again in July 2015, is a distant memory. Certainly, services have improved significantly. There are new trains and buses, while existing ones have been spiffed up. There has been an overhaul of the older rail systems, presumably including fixing the grips for the electricity rail ....

Failed Innopac deal portends mining magnate Gutnick’s woes in Australia

SINGAPORE (May 20): The Australian Securities and Investments Commission (ASIC) is seeking judicial permission to wind down mining company Merlin Diamonds. The regulator is also probing into whether its chairman Joseph Gutnick failed in his duties. Gutnick, who is known as “Diamond Joe”, is under investigation for a A$13 million ($12.3 million) loan made by Merlin to AXIS Consultants, a private company linked to him. Merlin shares have been suspended from trading since October 2018. ASIC is seeking an order to appoint Deloitte to liquidate Merlin, owner of the Merlin Diamond Mine Pro....