ST Integrated Engineering to raise $4m via private listing on 1exchange

ST Integrated Engineering's chairman Mushtaq Ahmad said that the capital raising comes as the company enters its next major phase of growth.
ST Integrated Engineering's chairman Mushtaq Ahmad said that the capital raising comes as the company enters its next major phase of growth. PHOTO: ST INTEGRATED ENGINEERING

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

The engineering and IT solutions firm 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 (UAE).

STIE said on Wednesday (Aug 28) that 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.

The fundraising campaign will be accessible to accredited investors in Singapore and qualified investors globally, via the CapBridge investment platform.

Proceeds from the listing will allow STIE to enter new markets and build its capabilities in anticipation of larger and more complex tender opportunities.

The company 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, the company will focus on the rail and infrastructure segment. STIE has participated in sizeable government and public sector contracts such as RapidKL and Hartasuma Sdn Bhd 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 noted.

STIE said it is well-positioned to capture this growth, as its smart solutions can be applied in numerous 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," STIE chairman Mushtaq Ahmad said.

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

With more than 375 employees, STIE has offices in Singapore and India. The company expects to continue increasing its staff headcount and building deeper expertise as it expands into new markets.

The 1exchange platform is regulated by the Monetary Authority of Singapore. It 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.

The first private company listing on 1exchange took place in July this year, when boutique fund manager Aggregate Asset Management went live on the exchange with about 5 per cent of its shares in an oversubscribed offering.