The manufacturing sector may be struggling but Eindec Group is optimistic enough that it launched its initial public offering yesterday - which is also the first for this year.
Eindec, which manufactures and distributes cleanroom equipment and heating, ventilation and air-conditioning equipment, is seeking a listing on the Catalist board.
It will issue 35.8 million new shares at 21 cents each, which will represent 33.2 per cent of the group's resulting share capital of 107.7 million shares.
There is no retail tranche offered.
The shares are expected to begin trading on the Catalist at 9am next Friday. There is no retail tranche offered.
The estimated net proceeds of about $4.6 million will be used to market air purifier products in China, fund product development and enhance manufacturing capabilities.
The manufacturing sector here has suffered from lacklustre global demand, and electronics output in particular has been hit hard. However, executive director Paul Chia told The Straits Times yesterday that he expects operations here to remain stable.
Eindec is also positive about regional markets, noting that growth in China, the Philippines, Thailand and Indonesia is still "healthy".
Demand for buildings and electronics will grow substantially in China, Mr Chia added.
Around 73.9 per cent of Eindec's revenue came from Singapore in the first six months of last year. However, the group expects regional markets to eventually account for a larger portion of its sales.
In particular, it hopes that air purifier sales to China will generate a "sizeable" portion of growth given that the air quality in its cities has worsened.
The air purifier market is growing there at about 25 per cent a year, Mr Chia said, adding that he hopes Eindec can expand its sales of the product "along that line".
Sales of cleanroom equipment will also be driven by firms seeking to restructure facilities to manufacture mobile devices like smartphones and tablets instead of desktop computers.
"(Firms) have to immediately retool, because you find your desktops (sales) are coming down, your mobile device sales are going up," Mr Chia said.
He added that the firm's ability to offer customers cleanroom, heating, ventilation and air-conditioning equipment and air-purifying solutions in a single package gives it a competitive advantage.