AsiaPhos launches IPO with S$200m market capitalization

Firm focused on phosphate mining in China.

AsiaPhos Limited (AsiaPhos), a Singapore-headquartered mineral resources company with vertically-integrated phosphate-based chemical production operations in the pipeline, launched its initial public offering (IPO) of 122 million Invitation shares priced at S$0.25 each, in conjunction with its proposed listing on the Catalist Board of the Singapore Exchange Securities Trading Limited (SGX-ST).

United Overseas Bank Limited (UOB) is the Sponsor and Underwriter of the Invitation. Asiasons WFG Capital Pte. Ltd. is the Placement Agent of the Invitation.

The Invitation Shares, comprising 97.6 million new shares and 24.4 million vendor shares, represent 15.25% of AsiaPhos’ enlarged post-Invitation share capital of 800 million shares. The Invitation comprises 2 million shares under the public offer tranche and 120 million shares under the placement tranche.

Based on the Invitation price of S$0.25, the post-Invitation market capitalisation of AsiaPhos will be S$200 million. It will be the first company to be listed on the SGX-ST which is solely focused on exploring and mining phosphate in the PRC with the ability to manufacture and produce phosphate-based chemical products.

“According to an independent valuation report, the preferred fair market value of the Group’s assets, namely the two mines and a P4 plant, is between RMB1.0 billion (or approximately S$207.6 million2) and RMB1.6 billion (or approximately S$332.1 million2) with the preferred value being RMB1.3 billion (or approximately S$269.8 million[) as at 31 March 2013. Accordingly, the Invitation price of S$0.25 represents a discount of almost 26% to the preferred value,” said Mr Khong Choun Mun, Head of Corporate Finance, UOB.

The Invitation opens at 7.00 p.m. on 25 September 2013 and is expected to close at 12.00 noon on 3 October 2013. Electronic applications are expected to open at 12.30 p.m. on 26 September 2013. Trading of AsiaPhos’ shares is expected to commence on a “ready” basis at 9.00 a.m. on 7 October 2013.