Year's first two IPOs aim to rake in S$9.2m net

  • Business
  • Wednesday, 15 Jan 2003

THE first two initial public offerings (IPOs) of the year in Singapore are looking to reap S$9.2mil in net proceeds for expansion, among other plans. 

As Hitchins Group launched its IPO of 20 million shares at 20 Singapore cents each on Monday, metal logistics firm GKE International said in a prospectus lodged with the Monetary Authority of Singapore (MAS) that it would offer twice that number of shares at the same price. 

As reported by the Singapore Business Times, Sesdaq aspirants Hitchins, a waterproofing and building protection solution provider, and GKE expect to reap proceeds of S$2.6mil and S$6.6mil respectively from their IPOs. The former aims to use S$1mil to expand production capacity in China, while the latter is expected to use S$1.5mil to move into South Korea and Indonesia. 

Of the remaining proceeds, Hitchins plans to use S$500,000 to expand in China, Thailand and the Philippines, and about S$600,000 for working capital. The balance S$500,000 will be used for research and development. 

Four million shares in Hitchins’ IPO are available for public subscription, while a minimum of 13 million shares will be placed out. Up to three million shares are reserved for staff and business associates. 

For the year ended June 2002, Hitchins made a net profit of S$2.3mil on revenues of S$12.6mil, up from a net profit of S$340,000 on turnover of S$10.2mil the prior year. 

GKE said in its prospectus it would offer 12 million of its IPO shares to the public and 28 million to large investors, staff and business associates. 

Some S$2.4mil of the proceeds will be used to repay loans, while the rest will be used as working capital. 

GKE posted a net profit of about S$3mil for the year ended May 2002, a third higher than in the previous year.  

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