e-commerce firm Synagie targets $11.6m proceeds in IPO

Invitation shares were launched at 27 cents each.

e-commerce enabler Synagie Corporation (Synagie) launched its initial public offering (IPO) of 43 million shares 27 cents each for its listing on the Catalist Board of the Singapore Exchange Securities Trading Limited (SGX-ST).

According to an announcement, Synagie eyes to raise gross proceeds worth $11.6m and net proceeds worth $9.8m that will be used for business expansion, including penetrating new geographical locations, investments in information technology capabilities, mergers and acquisitions and working capital. It also targets a market cap of $70.7m.

The invitation shares will represent 16.4 % of Synagie’s post-invitation share capital of 261,704,993 shares. Of this, 3.8 million will be offer shares whilst 39.2 million will be placement shares.

The IPO will close at 12 noon on 6 August 2018 and the listing of Synagie’s shares is expected to start at 9 a.m. on 8 August 2018.

RHT Capital Pte. Ltd. is the issue manager and full sponsor for the Listing and UOB Kay Hian Private Limited is the underwriter and placement agent.

With the highest e-commerce penetration rate over total retail volume in Southeast Asia, Singapore holds a strategic market position for brands looking to expand their online presence, Synagie noted.

“e-commerce enablers will thus play an important and critical role for the future development of the e-commerce industry in Singapore and SE Asia as they help brands to optimise e-commerce go-to-market (GTM) strategies with high level of product control across different online sales channels,” it added.