Two newcomers for Catalist board

United Global's tank farm, where it stores oil. The group also owns a lubricant blending plant and an in-house laboratory in Singapore. Its customers come from more than 30 countries and territories.
United Global's tank farm, where it stores oil. The group also owns a lubricant blending plant and an in-house laboratory in Singapore. Its customers come from more than 30 countries and territories.PHOTO: UNITED GLOBAL

Two more companies will make their debut on the Catalist board over the next two weeks as the momentum of new listings stays strong for the Singapore Exchange.

United Global begins trading tomorrow while Advancer Global will be officially listed next Monday.

United Global is a lubricant manufacturer that distributes its products to more than 30 countries and territories. Its subsidiary, United Oil Company, is a specialist firm in automatic transmission fluids.

Its initial public offering (IPO) comprises 42.8 million placement shares priced at 25 cents apiece. The net proceeds of around $9.2 million will be mostly used to expand the business via investments and acquisitions.

The company reported that its profit hit US$6.2 million (S$8.4 million) in the last financial year, up 88 per cent from two years ago. This implied earnings per share of 3.6 cents.

A positive outlook awaits the company, United Global said in the prospectus.

"The global lubricant market was 36.36 million tonnes in 2014 and is projected to grow to 43.87 million tonnes by 2022… World demand for lubricants is expected to rise 2 per cent yearly through 2019," it said.

Besides further acquisitions, United Global also plans to expand into new markets, including possible collaboration in Myanmar and Bangladesh, it added.

United Global has not set a dividend policy.

Meanwhile, Advancer Global announced in its prospectus that it will offer 43 million shares - including 2 million shares for public offer - at 22 cents apiece. The IPO will raise about $7.54 million in net proceeds, to be used mainly to expand operations.

Advancer Global commands a diverse group of businesses, ranging from foreign domestic worker employment to security and cleaning services. Maid agency Nation Employment is part of the group.

"The number of elderly persons aged 65 years and above is estimated to increase from 340,000 in 2011 to 900,000 in 2030," the company said, highlighting the rising need for domestic helpers as one of its growth drivers.

Since 2013, profit has been growing at a compound annual rate of 30 per cent, to $4.4 million last year.

Advancer Global also has no fixed dividend policy, but it intends to pay out at least half of its net profit in financial years 2016, 2017 and 2018.

Wong Wei Han

A version of this article appeared in the print edition of The Straits Times on July 07, 2016, with the headline 'Two newcomers for Catalist board'. Print Edition | Subscribe