SINGAPORE - Civil engineering solutions provider Huationg Global launched on Monday its initial public offering (IPO) of 27.5 million placement shares priced at 20 cents apiece.
The Catalist-bound company will raise around $4.1 million for potential acquisitions and joint ventures as the company positions itself for higher construction demand in Singapore.
Net proceeds from the listing will also be used to ramp up the company's production of liquefied soil stabiliser (LSS), which is also set to see increased demand going forward, chief executive Mr Patrick Ng told reporters today when announcing the IPO.
Huationg's positive outlook is underpinned by high demand for civil engineering construction services, Mr Ng noted, as the projected growth of population to 6.9 million people by 2030 will necessitate a sustained pipeline of infrastructure and housing projects.
According to forecasts by the Building and Construction Authority, construction demand will be sustained between $25 billion and $34 billion annually for 2015 and 2016.
This will also present an opportunity for Huationg to increase its sales of LSS, a type material that can be used for post excavation refilling, Mr Ng added.
Against this backdrop, Huationg's revenue has seen a 15.7 compound annual growth rate since financial year 2011 to reach $108.5 million in 2013. It is now involved in 15 major ongoing construction projects, including the construction of Loyang Bus Depot and Tampines Neighbourhood 6. Its current order book for civil engineering business stands at around $114.3 million.