ST Integrated Engineering to raise $4m on 1exchange

It will list undisclosed portion of equity on private securities bourse

ST Integrated Engineering (STIE) is seeking to raise about $4 million for its expansion by listing on 1exchange, Singapore's only regulated private securities exchange.

The engineering and IT solutions company offers integrated facilities management (IFM) solutions and information technology services (ITS) to both private and public sector clients in Singapore, Malaysia, Saudi Arabia and the United Arab Emirates.

STIE yesterday said it will list an undisclosed portion of its equity on 1exchange, an affiliate of private capital platform CapBridge, which is backed by the Singapore Exchange.

Its move follows that of boutique fund manager Aggregate Asset Management, the first private company to list on 1exchange. It went live on the exchange last month with about 5 per cent of its shares in an oversubscribed offering.

The 1exchange platform, regulated by the Monetary Authority of Singapore, enables private firms to create and list tradeable equities, which can be bought and sold by investors at any time with no lock-up period.

STIE's fund-raising campaign will be accessible to accredited investors here and qualified investors globally, via the CapBridge investment platform. The proceeds will allow the company to enter new markets and build its capabilities in anticipation of larger and more complex tender opportunities.

It also plans to develop and implement more high-value IT solutions for its clients, as it focuses on expanding its IFM, ITS, as well as railway and infrastructure services.

For its near-term growth strategy, STIE will focus on the rail and infrastructure segment. It has participated in sizeable government and public sector contracts such as those for RapidKL and Hartasuma in Malaysia.

Both the IFM and ITS sectors are expected to grow rapidly as digitalisation efforts continue at companies around the world, STIE said. "Smart solutions that can manage, maintain, repair and integrate physical assets and facilities are continually being sought after, even as more 'smart' buildings and cities are being developed," it added.

The company said it is well positioned to capture this growth, as its smart solutions can be applied in many industries, including utilities, aerospace and defence, telecommunications, supply chain and logistics, real estate and infrastructure.

"STIE is entering our next major phase of growth. Our diversified customer base characterised by long-term and large-scale contracts has enabled us to think and operate as a sustainable and resilient business through economic cycles, anchored by smart technology and deep field expertise," said STIE chairman Mushtaq Ahmad.

In Singapore, the firm's clients include the Building and Construction Authority and the Housing Board. It also works with McDonald's in Saudi Arabia and the Abu Dhabi Police in the UAE.

STIE has offices in Singapore and India and employs over 375 workers. It expects to employ more staff and building deeper expertise as it expands into new markets.

A version of this article appeared in the print edition of The Straits Times on August 29, 2019, with the headline 'ST Integrated Engineering to raise $4m on 1exchange'. Print Edition | Subscribe