GIC-backed co-working firm sells new shares to the public; Mary Chia goes to court to settle debt

SINGAPORE – GIC-backed co-working operator JustCo launched its initial public offering (IPO) on May 15, aiming to raise $100 million to fund its expansion plans.

The offering of 32 million new shares priced at 94 cents per share comprises 25.7 million shares for institutional investors and 6.3 million shares set aside for the Singapore public.

JustCo will also issue 74.3 million new shares to several cornerstone investors to raise $69.8 million, which will cover about 70 per cent of the target proceeds.

The investors include fund managers selected by the Government to invest in the Singapore stock market, such as Avanda Investment Management, JPMorgan Asset Management, Amova Asset Management and Fullerton Fund Management.

The Singapore public offer opened at 9pm on May 15 and will close at noon on May 20. Trading on the Singapore Exchange (SGX) mainboard is expected to start at 9am on May 22.

Since it started in 2011, Singapore-grown JustCo has built a network of 54 co-working spaces in 12 cities: Singapore, Bangkok, Bengaluru, Gurugram, Ho Chi Minh City, Hsinchu, Melbourne, Osaka, Seoul, Sydney, Taipei and Tokyo.

In an interview with The Straits Times in February, JustCo founder and chief executive Kong Wan Sing said he believes the future of work is working from anywhere in a conducive environment, with the technology to enable that flexibility.

Mary Chia goes to court

Shares of Mary Chia plunged more than 18 per cent this week, closing May 15 at 2.2 cents.

In SGX filings, Mary Chia said creditor Fullink Capital had initiated insolvency proceedings against the company and its subsidiary Organica International, as well as its founder Mary Chia, CEO Ho Yow Ping and chief financial officer Su Jun Ming, over money allegedly owed under financing agreements.

Fullink Capital had originally lent Organica International $350,000, but following disputes over the loan repayments, it claimed the full outstanding amount as immediately due, together with late-payment interest and other fees under the loan and settlement agreements. The sum amounts to $902,640.

Mary Chia said the dispute is not simply over unpaid loans but also over additional charges imposed on the debt, including late-payment fees, default interest and restructuring fees, which the company argues may be excessive and legally unenforceable.

It has filed a separate application asking the court to determine whether some of the charges are valid.

The disclosures drew the attention of SGX RegCo, which has asked the company and its sponsor to assess whether Mary Chia can continue operating if the worst-case scenario occurred and Fullink Capital’s claims succeeded fully in court.

Mary Chia said on May 14 that its board had reviewed the group’s legal and financial position and concluded that it can continue to operate and meet its obligations while the dispute with Fullink Capital remains before the courts.

The company said controlling shareholders Suki Sushi and Ms Ho have indicated continued financial support if needed, while sponsor Evolve Capital Advisory said it believes Mary Chia can meet its obligations even if Fullink Capital’s claims are upheld in full.

The next court conference is scheduled for May 21.

Mary Chia added that Fullink Capital has since filed its reply affidavit and separately applied to pause Mary Chia’s court application challenging the disputed fees and charges.

SIA warns of cost pressures

Singapore Airlines (SIA) closed 2 per cent higher at $6.42 on May 15, a day after it reported its full-year results for the financial period ended March 31.

The airline saw record revenues, which rose 5 per cent year on year to a high of $20.5 billion.

SIA and its low-cost subsidiary Scoot flew 42.4 million passengers between April 1, 2025, and March 31, 2026, up 7.7 per cent from a year earlier.

Costs were manageable for the financial year ended March 31, helping the airline group post a 39 per cent year-on-year jump in operating profit to $2.4 billion.

But the skies ahead are cloudy for the airline, with jet fuel prices rising because of the Middle East conflict.

SIA said airfares have already risen, but not enough to fully cover the increase in jet fuel costs. It added that it will not further raise fares to fully cover higher jet fuel costs, as customers will not want to pay more.

SIA has also been weighed down by losses at Air India, which has been affected by a deadly crash in June 2025, the closure of Pakistani airspace and the Middle East conflict.

SIA swung from a share of profits from associated companies a year earlier to a loss of $846 million in financial year 2025/2026, as it had to account for a full year of losses from Air India in this set of results, compared with only four months previously.

But SIA said it remains committed to Air India’s long-term transformation and will continue to support the airline in its efforts.

Genting Singapore and SingPost slide

Analysts lowered their targets on Genting Singapore after its first-quarter profit fell below expectations.

Genting Singapore reported this week a 55 per cent year-on-year drop in net profit to $65.2 million, citing rising operational costs and poor demand at Resorts World Sentosa (RWS) due to the war in the Middle East. It added that it has opened new attractions to draw visitors to RWS.

But analysts said Genting Singapore’s results suggested the need for a “comprehensive rethink of its operational strategy and asset enhancement initiatives” so the company can return to its previous profitability levels.

Nomura described the company’s earnings as a “significant miss”, while DBS Group Research downgraded the stock to a “hold” on May 13 and also decreased its target price to 67 cents.

Genting Singapore shares are down more than 13 per cent this week and closed May 15 at 60 cents.

SingPost also reported weaker results this week.

It saw revenue fall 23.1 per cent to $376.1 million for the financial year ended March 31, mainly due to a sharp drop in its international business amid a weak global economy and continued declines in letter mail volumes.

In an abrupt shift from a year ago, SingPost also announced that it will no longer sell the SingPost Centre in Paya Lebar. The property was initially being considered for sale to free up funds for the business.

SingPost CEO Mark Chong, who was appointed in November 2025, said SingPost Centre remains an important asset that generates stable rental income and maintains high occupancy.

Shares of SingPost closed on May 15 at 34 cents, down around 12 per cent for the week.

Other market movers

Chip-testing firm AEM Holdings was among the most traded stocks on the SGX this week.

The company reported on May 13 that revenue in the first quarter of 2026 rose 35.8 per cent year on year to $116.9 million, driven mainly by strong demand from customers producing AI and high-performance computing chips.

Profit before tax climbed to $17.8 million, while net profit rose to $14.3 million.

For the full year, the group raised its revenue guidance by about 20 per cent to between $550 million and $600 million.

Shares of AEM Holdings surged almost 24 per cent through the week, breaching the $10 mark for the first time on May 15, before paring gains to close at $9.25. Year to date, the stock is up more than 400 per cent.

CNMC Goldmine proposed that it transfer from the Catalist board to the SGX mainboard to raise the company’s visibility.

It said on May 14 that it had submitted an application, and added that the move is expected to increase the firm’s investor base.

CNMC Goldmine shares fell 4.7 per cent through the week and closed on May 15 at $1.32.

Marco Polo Marine said it would spin off its shipyards through a reverse takeover of Fuji Offset Plates Manufacturing in a deal worth up to $139 million.

The company also posted a 9 per cent rise in net profit to $11.6 million for the six months ended March 31, from $10.6 million a year earlier.

Shares rose 11.3 per cent through the week and closed on May 15 at 19 cents.

What to look out for next week

Singtel will report its full-year results for the financial year ended March 31 on May 21.

Markets could be volatile after US President Donald Trump wrapped up two days of talks in Beijing with Chinese President Xi Jinping this week. Mr Trump called the talks “very successful”, although no deals have been announced.

At a joint press conference, the leaders were reported to have discussed trade, Iran and “a lot of other things” during the bilateral talks.