SINGAPORE- GS Holdings, a dishware washing company, has launched an initial public offering in Singapore. The group is seeking a listing on the Catalist board of the Singapore Exchange.
The placement of 24 million shares at 25 Singapore cents each is expected to raise total gross proceeds of S$6 million and net proceeds of approximately S$4.1 million.
Upon completion of the placement, GS's market capitalisation is expected to be approximately S$31 million.
The offer document was registered today and the placement, will close at noon on January 14. Listing and trading of GS shares on the Catalist is expected to commence at Jan 18.
GS plans to utilise the proceeds for expansion of its dishware washing operations and general working capital requirements.
Mr Pang Pok, executive chairman and chief executive officer, said in a statement that the centralised dishware washing industry was largely untapped and growing.
GS currently owns three centralised dishware washing facilities. It plans to relocate its facility at Senoko Avenue to a larger one at Loyang Way in March 2016. It also intends to improve automation for large scale dishware washing.
GS said that according to market research, the potential market size of centralised dishware washing services was estimated to be between S$290 million and S$340 million in 2014, of which 98 per cent remains untapped.
The growth of the food and beverage (F&B) services industry is a key driver for the centralised dishware washing sector, it said. A strong domestic "eating out" culture in Singapore, in line with rising living standards and income, would lead to increased spending on F & B services, it said.
The group reported a revenue of S$3.4 million for the six month period ended June 30 last year. This is about 40 per cent higher than full year revenue of S$2.4 million for 2014. Gross profit was S$0.3 million in the first half of 2015.
The group has also secured an order book of S$18.2 million, of which S$14.2 million is expected to be delivered within a year from Dec 15.