Anti-corrosion coating firm AGV launches IPO on Catalist

Founders of the AGV Group, one of the leading providers of hot dip galvanising services in Singapore, brothers Albert (left) and James Ang.
Founders of the AGV Group, one of the leading providers of hot dip galvanising services in Singapore, brothers Albert (left) and James Ang.ST PHOTO: ALPHONSUS CHERN

SINGAPORE - AGV Group, a local firm specialised in hot dip galvanising, launched its public offering on Thursday (Aug 18) as it geared up for a Catalist listing.

The company is one of the only five in Singapore that provide anti-corrosion coating for steel and ironworks. The service is commonly applied in construction, engineering, utilities and telecommunications projects.

AGV has put up 26,920,000 at 22 cents apiece for a placement that aims to raise S$4.8 million, or S$4.3 million in net proceeds.

The placement will close at 12 noon on Aug 24, with the listing and trading expected to start at 9am on Aug 26.

The money will be used mainly to acquire full control of a holding company that owns 51 per cent of a hot dip galvanising company operating in Johor, chief executive Albert Ang told reporters at a briefing.

In Singapore, AGV has a plant in Jurong, with a team of around 150 people.

Mr Ang added that his company - co-founded with his brother James in 2012 - has around one third of the market share in Singapore, and about 70 per cent of the demand is supported by public works.

One of AGV's recent key projects was the coating of some 24km-long of fencing around Changi Airport last year, Mr Ang noted.

Group revenue grew from S$15.3 million in 2013 to S$18.8 million last year, while net profit grew from S$1.4 million in 2013 to S$2.2 million over the same period. In the first half this year, revenue was S$9.8 million.

Mr Ang expects public works to continue to drive AGV's growth as more infrastructure projects are launched in Singapore and Malaysia. RAPID, a Petronas petrochemical complex to be developed in Johor, and the phase two works of Singapore's deep tunnel sewerage system are among the future projects that AGV is confident to be part of.