Y Ventures Group offers S$0.22 a share to raise S$7.7 million in Catalist listing

SINGAPORE: Local e-commerce retailer and distributor Y Ventures Group has lodged a prospectus for an initial public offering (IPO) on the Catalist board of the Singapore Exchange (SGX).

The group is offering 35 million shares at 22 cents a share. The total amount to be raised is about $7.7 million with $6 million of that as net proceeds.

The proceeds will fund expansion through research and development of data analytics capabilities, advertising and developing its product range and new markets plus general working capital purposes.

The company said it plans to "acquire distributors with strategic alignments and invest in consumer product brands, existing channel stores and overseas joint ventures."

Before its placement, Mr Adam Low Yik Sen, the executive chairman and managing director, and chief executive and executive director Alex Low Yi Ji each held 43.1 per cent of the company's share capital.

After the placement, they will remain as controlling shareholders with each expected to hold 35.6 per cent of the total post-placement share capital.

Y Ventures said it made $12.1 million in revenue last year, up from $8.9 million in 2015, due mainly to higher sales under its third-party brands.

Net profit attributable to shareholders was $1.53 million, down from $1.67 million in 2015 due to higher cost of sales, administrative and other expenses.

Y Ventures distributes a wide range of merchandise under third-party brands and its private label, Just Nile. Its merchandise is sold on sites like Amazon and eBay, as well as leading regional online marketplaces such as Qoo10 and Lazada.

The issue manager and sponsor is RHT Capital and the placement agent is UOB Kay Hian.