SINGAPORE - Catalist-listed Reclaims Global opened at 17.9 cents on its trading debut, down 22 per cent from its initial public offering (IPO) price of 23 cents.
The eco-friendly construction service provider's IPO, which closed last Friday, was 1.03 times subscribed. The IPO size totalled 20 million shares, with the public being offered two million shares, 13 million being placement shares and the remaining being reserved for management, staff and business associates.
Reclaims Global specialises in the recycling of construction and demolition (C&D) waste, customisation of excavation solutions and operating fleet management.
Of the net proceeds of $2.76 million, $0.6 million will be used to expand its operational capacity through investment in more plant and equipment, and its enterprise resource planning solution. About $0.5 million will be used to expand its recycled product range, while $0.3 million is earmarked for expansion by way of acquisitions, joint ventures and/or strategic alliances. The remaining $1.36 million will be used for general working capital purposes.
Andrew Chew, chief executive officer and executive director of Reclaims Global, said: "Today, the listing of Reclaims Global marks another significant milestone for the group, after celebrating our 10th anniversary on Jan 30, 2019. The listing on the Singapore Exchange will enhance our visibility as an eco-friendly integrated service provider in the construction industry, and more importantly, it will provide access to funds as we continue to expand our operations and recycled product range."
Reclaims Global expects that the demand for public sector construction will continue to be strong and propel the overall demand in the construction industry. It believes that more will start to embrace the use of recycled and waste materials as mainstream building products with advancements in the repurpose of C&D waste, and the government's initiatives to incentivise the building and using of green buildings.
Mohamed Nasser Ismail, head of equity capital markets at SGX, said: "More companies are striving to achieve environmental sustainability, driven by environmental concerns of their end customers. Total construction demand in Singapore is also expected to remain strong, backed by sustained public sector construction demand for infrastructural projects. We are delighted to welcome Reclaims Global Limited to Catalist, and we look forward to supporting its fund raising activities and environmentally responsible initiatives."
With a market capitalisation of about $30 million, the listing of Reclaims Global brings the total number of companies listed on the Catalist to 217, with a combined market capitalisation of about $10 billion.