THE share price of Singapore civil engineering company Huationg Global has surged 17.5 per cent on its debut on the local bourse.
In early trading on the Singapore Exchange's Catalist board, Huationg Global had jumped 3.5 cents to 23.5 cents from its initial public offering (IPO) price of 20 cents.
The company raised $4.1 million in net proceeds from its IPO, which involved the placement of up to 27.5 million shares.
Huationg Global has said the cash injection will be used to fund acquisitions, given that the group expects a bright outlook underpinned by robust construction demand in the coming years.
Founded in 1983 as Sin Choon Contractor, Huationg Global has grown into a firm with nearly 900 workers and 149 tipper trucks. It focuses mainly on public projects offered by the Housing Board and the Land Transport Authority, among others.
The firm believes strong construction demand will boost sales of construction materials supplied by Huationg Global, such as liquefied soil stabiliser (LSS), a self-compacting material used as backfill.
The benchmark Straits Times Index was up 15.9 points or 0.48 per cent to 3,313.74 in early trading.