A firm that is in the industrial oils and lubricants sector has lodged a preliminary offer document for a listing on the Catalist board.
United Global, which is seeking the listing, owns United Oil Co, which began operations in 1999.
United Oil makes lubricants under its in-house brands as well as other third-party principals' brands. It also trades base oils, additives and lubricants.
United Global chief executive and executive director Jacky Tan told The Straits Times yesterday: "We believe a listing on the Catalist would enhance the group's profile internationally, which may open up more business opportunities as we step into our next growth phase.
"Notwithstanding the market conditions, we believe the group is ready to seek a listing and we have a good growth strategy to take it to the next level."
The group owns a lubricant blending plant and an in-house laboratory in Singapore. The lab also conducts tests in accordance with the standards set by the American Society for Testing Materials.
United Global supplies a wide range of lubricants and speciality fluids for automotive, industrial and marine applications to customers from around 30 countries. More than 88 per cent of its total sales last year were derived from outside Singapore.
The group posted a profit of US$6.2 million (S$8.4 million) last year, up from US$3.4 million in 2014, while revenue fell to US$99.9 million from US$118.7 million. It had 69 employees as at Dec 31 last year.
Proceeds from the IPO will be used to redesign its blending, filling and storage processes, improve productivity and reduce labour costs.
Process improvements, which are estimated to cost about $400,000, are expected to start in the third quarter and be completed by the first quarter next year. This will be financed through internal resources and government funding.
The group hopes to expand and diversify its business through investments, acquisitions and joint ventures. It intends to expand into new markets and boost its presence in existing markets through distributorship agreements to sell base oils and produce lubricants carrying its brand names.
Canaccord Genuity Singapore is the issue manager and sponsor, while SAC Capital and Haitong International Securities (Singapore) are the joint placement agents.