Grand Venture Technology raising $13.2 mil from Catalist IPO
SINGAPORE (Jan 15): Grand Venture Technology (GVT), the homegrown manufacturing solutions and services provider, on Tuesday registered its offer document with the Singapore Exchange for an initial public offer (IPO) on the Catalist board.
GVT will be selling 42.9 million new shares at 27.5 cents each, representing 18.3% of the the group’s post-invitation share capital of 234.3 million shares. Of these, 800,000 shares will be sold by way of public offer while the remaining 42.1 million placement shares placed out to investors.
Meanwhile, Sunshine Power, an investment vehicle held in trust for CLSF LLP, has entered into a cornerstone subscription agreement with GVT to subscribe for 5.1 million shares at the same price.
Based on the invitation price, the market capitalisation of GVT immediately upon listing is expected to be $64.4 million.
Established in 2012, GVT provides a broad range of engineering, assembly, testing, as well as product lifecycle management solutions, for the manufacture of complex precision machining and sheet metal components and modular assemblies.
Group revenue grew at a compounded annual growth rate (CAGR) of 87% from $8.8 million in FY2015 to $30.9 million in FY2017. The group also achieved a revenue growth of 37.9% from $15.8 million in 1H17 to $21.8 million in 1H18.
In FY17, the group achieved a net profit of $3.8 million compared to a net loss of $2.4 million in FY15. The group also reported a net profit growth of 40.2% from $2.1 million in HY17 to $2.9 million in HY18.
Looking ahead, GVT plans to leverage its capabilities and technological know-how to expand its customer base in existing and new market segments, as well as grow its footprint through mergers, acquisitions and joint-venture partnerships where opportunities arise.
The gross proceeds of $13.2 million raised from the IPO will go towards investing and enhancing its operational and engineering capabilities; expansion via mergers and acquisitions, joint ventures and partnerships; and repayment of bank borrowings for general working capital purposes.
The invitation will close at 12pm on Jan 21 while the listing and trading of GVT’s shares is expected to start at 9am on Jan 23.
CIMB Bank, Singapore Branch is the sponsor and issue manager for the IPO while CGS-CIMB Securities (Singapore) is the underwriter and placement agent.
