Grand Venture IPO raises $13.2m; trading starts today

Grand Venture Technology executive chairman Ricky Lee says that the company is encouraged by the response to the IPO. The company has been growing its advanced machining capabilities since it was established in 2012, and has ventured into manufacturi
Grand Venture Technology executive chairman Ricky Lee says that the company is encouraged by the response to the IPO. The company has been growing its advanced machining capabilities since it was established in 2012, and has ventured into manufacturing analytical life sciences equipment.PHOTO: THE BUSINESS TIMES

Home-grown manufacturer is SGX's first public listing this year

Grand Venture Technology has started the listings ball rolling for 2019 with the year's first initial public offering (IPO).

The home-grown manufacturer and services provider placed out 42.9 million new shares at 27.5 cents each, raising gross proceeds of around $11.8 million.

The offer comprised a public tranche of 800,000 shares and a placement tranche of 42,118,000 shares, with all fully subscribed at the IPO's closing on Monday.

The addition of the 5.095 million shares subscribed for by investment holding company Sunshine Power allowed Grand Venture to reach its $13.2 million gross proceeds target.

About $10.9 million of this will be net proceeds.

There were 288 applicants applying for around 12.5 million shares in the public tranche, making Grand Venture's IPO oversubscribed by 1.3 times overall, the group said in a statement yesterday.

Application funds received amounted to about $3.4 million.

The shares will begin trading today on the Catalist board.

Grand Venture's executive chairman Ricky Lee, a technology industry veteran, said the company was encouraged by the positive response to the IPO.

He said: "We see this as a vote of confidence to our prospects and growth plans. This will spur us on to execute our strategy and take Grand Venture to the next stage of growth."

The company, which has facilities in Singapore, Penang and Suzhou, China, has been growing its advanced machining capabilities since it was established in 2012, and has also ventured into manufacturing analytical life sciences equipment.

Its business has diversified into providing a broad range of precision engineering, assembly, testing, and product life cycle management solutions.

The IPO was managed by CIMB Bank Singapore, while CGS-CIMB was the underwriter and placement agent. Grand Venture's market capitalisation is now expected to be about $64.4 million, up from $58.6 million at the time of the offer.

A version of this article appeared in the print edition of The Straits Times on January 23, 2019, with the headline 'Grand Venture IPO raises $13.2m; trading starts today'. Print Edition | Subscribe