A Malaysian-based integrated professional services firm yesterday launched its initial public offering (IPO) to list on the Singapore Exchange's Catalist board.
Axcelasia aims to raise about $11.88 million with 47.52 million placement shares at 25 cents each - comprising 35.52 million new shares and 12 million vendor shares.
It said at a briefing that it is listing in Singapore to take advantage of its status as an international investment hub. The move also ties in with the company's ambition to "scale up" its presence outside of Malaysia.
Axcelasia's key businesses are in tax advisory, consultancy, enterprise management system application and business support.
Its major clients include the subsidiaries of Tan Chong Group and Telekom Malaysia, it said.
After excluding cash expenses relating to the IPO and proceeds from the vendor shares, Axcelasia said the estimated net proceeds from the issue of new shares will be $7.58 million. Most of the proceeds will be earmarked for expansion beyond Kuala Lumpur and for diversifying its range of services.
It hopes to strengthen its tax advisory business by moving into Johor Baru and Penang as well as penetrating new Asean markets.
Executive director Ranjit Singh said Axcelasia intends to establish its presence in each of the Asean countries over the next three to five years, and this will be done "either through organic (growth), or acquisition or joint venture".
Axcelasia and its subsidiaries provide integrated professional services mainly in Malaysia to government-linked entities, private and public listed companies, and multinational corporations.
Axcelasia and its unit, Taxand Malaysia, booked a net profit of about RM1.6 million (S$520,000) in the 2014 financial year, up from 2012's RM239,000. Its revenue rose from about RM4.2 million in 2012 to RM8.3 million in 2014.
The board intends to recommend dividends of not less than 50 per cent of the company's net profit for the 2016 and 2017 financial years.
The share application closes at noon on Nov 25, with trading on the Catalist board expected to start at 9am on Nov 27.