SINGAPORE (July 30): E-commerce solutions provider Synagie Corporation has launched its initial public offering (IPO) to list on the Catalist board of the Singapore Exchange (SGX), with a total of 43 million invitation shares offered at 27 cents apiece.

Some 3.8 million shares will offered via the public tranche, while the remaining 39.2 million shares will be available by way of placement. The invitation shares will represent 16.4% of Synagie’s post-invitation share capital of 261.7 million shares.

Top photo: Synagie Corporation co-founders Zanetta Lee (left), Olive Tai (middle), and Clement Lee (right).

Post-IPO, Synagie is expected to have a market capitalisation of approximately $70.7 million. The invitation is expected to raise approximately $11.6 million in gross proceeds, and around $9.8 million in net proceeds.

Synagie says the net proceeds will be used for business expansion, including penetrating new geographical locations, investments in information technology capabilities, mergers and acquisitions, and working capital.

Founded in 2014, the group helps traditional businesses to shift their businesses online by providing end-to-end commerce enablement and fulfilment solutions, including e-logistics and insurtech.

Its clients leverage on the cloud-based Synagie Platform, which utilises technologies such as Artificial Intelligence and Big Data analytics, to manage multi-channel business processes and sales for both online and offline channels.

These clients, or brand partners, also use Synagie’s ecosystem to their distribute products and services on online marketplaces such as Lazada and Qoo10.

Synagie says it currently serves more than 250 brand partners in the Body, Beauty and Baby (BBB) sector, including Johnson & Johnson, Kimberly-Clark, and Shiseido.

The group saw its revenue more than double to $8.0 million in FY17, from $3.7 million in FY16, on the back of growth in its e-commerce and e-logistics business segments.

However, Synagie saw its FY17 loss before income tax widen to $3.4 million, falling 49% from a pre-tax loss of $2.3 million in FY16, as gross profit margin contracted 3.9 percentage points to 21.9% in FY17. The FY17 loss includes expenses incurred in connection to the IPO as well as finance costs related to the group’s convertible notes, which were fully converted.

“Our listing will give us the opportunity to grow faster by expanding further into the region, and leverage on our artificial intelligence and Big Data analytics capabilities to simplify commerce for businesses in Southeast Asia,” says Clement Lee, executive director and chief executive officer of Synagie.

According to Frost & Sullivan, the total gross merchandise value (GMV) of Southeast Asia’s e-commerce industry had trebled from US$5.3 billion in 2014 to US$16.6 billion in 2017, and is expected to climb at a compound annual growth rate (CAGR) of 22.3% to hit US$45.6 billion by 2022.

“With the phenomenal rise of e-commerce in Southeast Asia, we believe that the opportunity is to provide a seamless solution that would help brands and businesses shift online quickly,” Lee adds.

The invitation will close at noon on Aug 6. The listing and trading of Synagie’s shares on the Catalist board is expected to commence at 9am on Aug 8.

RHT Capital is the issue manager and full sponsor for the listing, and UOB Kay Hian is the underwriter and placement agent.