S’pore software firm Info-Tech Systems seeks to raise $23.4m in SGX IPO

SINGAPORE - Info-Tech Systems is seeking to raise $23.4 million via an initial public offering (IPO) on the Singapore Exchange (SGX), the local software firm said on June 27.

The offering, which will comprise 24.86 million shares priced at 87 cents each, is the first listing on the SGX mainboard in two years, following a dearth of new listings and

more firms exiting the exchange

.

The IPO comprises five million publicly offered shares in Singapore, and 19.86 million shares by way of international placement to selected investors.

In addition to the public offering, several cornerstone investors have also committed to buying 41.1 million shares, of which 13.8 million will be sold by company chairman and co-founder Peter Lee. These include institutional names such as Avanda Investment Management, Dymon Asia, Lion Global Investors, Maybank Asset Management Asia and Nikko Asset Management Asia.

Mr Lee has also granted the joint bookrunners and underwriters the option to purchase up to 4.9 million additional shares, bringing the total deal size to a value of $61.7 million.

OCBC is the sole issue manager and global coordinator for the proposed IPO, with CGS International Securities Singapore as joint bookrunners and underwriters.

The shares are expected to begin trading on July 4 at 9am.

Info-Tech Systems is the first Singapore software-as-a-service (SaaS) firm to list on the SGX.

Chief executive and co-founder Babu Dilip said that the company intends to channel the capital raised into new areas of growth, including research and development for new products, sales and marketing expansion, business penetration in new markets, and potential merger and acquisition deals.

Established in 2007 by Mr Babu and Mr Lee, Info-Tech Systems offers software solutions to help small and medium-sized enterprises (SMEs) improve their efficiency in human resource matters such as payroll, leave management and performance appraisal.

These products are typically purchased on a subscription model, and Info-Tech Systems recorded a 91 per cent retention rate last year.

About 75 to 80 per cent of the firm’s revenue comes from its Singapore operations, which have grown at over 15 per cent annually from 2022 to 2024. It also recorded healthy growth in Malaysia, India and Hong Kong, where it is expecting growth of between 7.2 per cent and 11.9 per cent in each of the four markets from 2025 to 2029.

In addition to its software offerings, the company also launched its artificial intelligence (AI)-assisted job portal Jobs Lah in 2023, as well as online training modules for employers to upskill workers. It plans to incorporate AI in more products as part of its goal to launch a one-stop solution for clients.

Mr Lee added that the company’s proactive approach in customer management and support puts them in a strong position for further customer acquisition and sustainable growth in the next few years.

Citing the high levels of regulation and compliance in Singapore as one of the main reasons for its decision to list on SGX, Mr Babu said the company is well positioned for its expansion plans.

“We are a Singapore-born company, and the majority of our revenue comes from Singapore. Singapore is known for good standards, regulations and compliances, which gives us a very good branding in the local market. This distinct status will also help us to grow faster in overseas markets.”

Info-Tech Systems’ listing is only the SGX’s second in 2025 after auto group Vin’s Holdings went public on Catalist in April, but experts say there is renewed optimism in the local equity market.

Mr Jason Saw, head of investment banking at CGS International, said Info-Tech Systems’ listing is reflective of the growth potential in local companies.

“We want to support growth companies coming out to the market. Info-Tech Systems is one company with a net margin of over 20 per cent and gross margin of 85 per cent. There are very few companies like that coming out to the market, and we hope that this could be the start of many, including those in the infrastructure and software sectors.

“There is an increase in the number of individual investors deploying capital and supporting listings in the local market, and we hope that this is a catalyst for the revival of SGX,” he added.

Mr Saw also pointed out that the recent spate of privatisations – at least 16 companies have already delisted or are in the process of doing so since the start of 2025 –  does not necessarily spell doom for the exchange, as many of these companies were already seeing sluggish growth and liquidity.

Mr Tan Kian Tiong, head of capital markets at corporate finance firm SAC Capital, observed that the recent jump in IPO activity in the market means companies continue to find value in accessing public capital amid returning investor interest.

On June 27, Japanese telco Nippon Telegraph and Telephone (NTT) lodged a preliminary prospectus with the Monetary Authority of Singapore (MAS) to list a data centre real estate investment trust on the SGX. On June 24, interior fit-out firm Lum Chang Creations also

filed preliminary documents for a listing on Catalist

.

“In an increasingly volatile global environment, we are likely to see a flight to safety and Singapore is well positioned to benefit from this, supported by initiatives led by MAS,” Mr Tan said.

“Many companies are approaching IPO readiness as a corporate journey, using this period to enhance governance, build track records and strengthen financial performance before hitting the market when conditions are favourable.

“Additionally, the strengthening of the Singapore dollar further reinforces the appeal of our equities market as a stable and credible fundraising platform.”