Grand Venture Technology launched IPO on Catalist at $0.275 per share

It will issue an aggregate 42,918,000 new shares.

Manufacturing solutions and services provider Grand Venture Technology registered its offer document with the Singapore Exchange Securities Trading Limited (SGX-ST) for an initial public offer (IPO) on the Catalist board, an announcement revealed.

The firm will issue an aggregate 42,918,000 new shares priced at $0.275 per invitation share. The invitation shares will represent approximately 18.3% of the GVT’s post-invitation share capital of around 234 million shares.

According to GVT, the invitation comprises of 800,000 offer shares at $0.275 for each offer share by way of public offer and 42,118,000 placement shares priced at the same amount for each placement share. All are parable in full on application.

The firm’s prospects are buoyed by sustained demand for semiconductor capital equipment which is supporting the global appetite for consumer electronics, infrastructure, wireless communication and medical devices, along with the adoption of the Internet of Things (IoT) and the growth of smart cities.

“Going forward, 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 were opportunities arise,” the firm explained. “GVT also plans to use part of the proceeds to invest in and enhance its operational and engineering capabilities across all its manufacturing locations.”

Based on its financial statements, GVT’s revenue has grown at a compounded annual growth rate (CAGR) of 87% from $8.8m in FY2015 to $30.9m in FY2017. In terms of net profits, the group has achieved a net profit of $3.8m in FY2017 compared to a net loss of $2.4m in FY 2015.

“These are exciting times for GVT,” the firm’s executive chairman Ricky Lee said in a statement. “We have overcome the industry’s high entry barriers in terms of capability building, capital investments and the long gestation period and stringent prequalification criteria with customers to arrive at this milestone.”

The invitation will close at 21 January 2019 at 12 p.m. whilst the listing and trading of GVT’s shares is expected to start on 23 January 2019 at 9 a.m.

CIMB Bank Berghad’s Singapore branch is the sponsor and issue manager for the IPO.