SINGAPORE - In a first for a Singapore-listed company, Global Invacom Group has announced plans for a secondary listing on London's Alternative Investment Market (AIM).
The AIM is a sub-market on the London Stock Exchange which allows smaller companies to float shares with more flexible rules, similar to the Singapore Exchange's Catalist board.
The firm plans to raise up to US$15 million (S$18.7 million) with the placement of 44.6 million new shares at 19.75 UK pence (42 Singapore cents) apiece. It intends to complete listing and placing by July 2, and "in any event" no later than Oct 31 this year.
With the new shares, the firm's share capital will increase by 23.3 per cent. Public shareholders trading on SGX will own 54.65 per cent, diluted from 65.16 per cent previously. Their counterparts on AIM will hold 16.14 per cent.
Substantial shareholder Neo Chee Beng's stake will drop from 10.02 per cent to 8.41 per cent. Mr Malcolm Burrell, an executive director, and Mr Anthony Taylor, the firm's chief executive will both see their shareholding diluted from 4.81 per cent to 4.03 per cent.
The rest of the shares belong to the firm's key management, whose stake will drop from 15.2 per cent to 12.75 per cent.
About US$7.6 million of the expected US$13.1 million in net proceeds will go to expansion, mainly through acquisitions over the next year or two. The rest will be used for general corporate purposes and working capital.
Global Invacom's net profit was US$8 million for the year ended Dec 31, 2013, reversing losses of US$17.7 million the previous year (2012). Revenue rose 55 per cent to US$115.8 million from US$74.7 million.
Net asset value per share was 19.32 US cents as at Dec 31 last year (2013), up 23.5 per cent from 15.64 US cents the year before.