SINGAPORE (THE BUSINESS TIMES) - Ship waste management company Shanaya Environmental Services debuted on the Catalist board on Thursday (Aug 19) following the completion of the reverse takeover of CPH, a printed circuit board company, a day earlier.
Shanaya shares opened at 22 cents, down 4.5 cents, or 17 per cent from its adjusted closing price of 26.5 cents on Aug 18.
That gives it a market capitalisation of $24.8 million and an implied price-to-earnings ratio of 32.1 times, taking into account the company's profit of $773,692 for the financial year ended Dec 31, 2020.
CPH had acquired Shanaya for $22 million, comprising $3 million in cash and 3.17 billion new ordinary shares at an issue price of 0.6 cent per share.
The $3 million in cash will be funded by proceeds from CPH's disposal of its Lok Yang property. Another $414,287 of the net proceeds from the disposal will be earmarked to secure the full lease term of a land parcel in Tuas South Street 15, where Shanaya has an integrated cruise and ship waste management, treatment and recycling facility.
The issue price of 0.6 cent per share was a premium of 33.3 per cent to the volume-weighted average price of 4.5 cents per share based on trades done on the shares on Sept 28 last year before the deal was announced.
As part of the listing, PrimePartners Corporate Finance, the financial adviser and sponsor to the company, will receive 1.7 million shares valued at $400,000. Oakwood & Drehem, the introducer, will also receive nearly 1.3 million shares valued at $300,000.
PrimePartners has said that it intends to dispose of its shareholding interests in the company at its discretion after the moratorium period of six months from Aug 18 is up.
