Security firm Secura Group launched its initial public offering (IPO) on the Singapore Exchange's (SGX) Catalist board yesterday.
The offer comprises 112 million new shares at 25 cents each, including four million public offer shares and 108 million placement shares.
Each of these new shares will come with two warrants that can trade or be exercised separately from the shares. Each warrant may be converted to one new share at an exercise price of 35 cents each - within an exercise period of three years - starting from the date of issue of the warrants.
Secura was formed last year through a merger of two groups of companies - one that provides security printing services and another that provides security guarding, cyber security, homeland security and other security-related services.
Revenue for the 2014 financial year came in at $30.4 million with net profit of $8.2 million, including a one-off gain of $5 million from the sale of a property.
It had an order book of $21 million from contracts as at July 1 last year.
Secura plans to use the bulk of its IPO net proceeds of approximately $26 million to expand its security guarding, as well as cyber security, technology and systems integration businesses. Some of the funds will be used to upgrade its security printing equipment, improve its corporate infrastructure and for general working capital purposes.
The public offer closes at noon on Jan 26, with trading of the shares to begin on Jan 28.
Secura's substantial shareholders include executive director and chief executive Peter Lim, Mr Wee Ee Chao and City Developments, who will collectively own about 52.7 per cent of the company after the IPO.
Mr Lim told a briefing yesterday that he believes the IPO with free detachable warrants is unique.
"We will be growing very quickly, and we will need to fund this rapid growth in the near future," he said.
He hopes investors will recognise the growth and convert the warrants to shares within the three- year timeframe.
Chong Koh Ping