SINGAPORE - Fuel products provider Union Gas Holdings has launched its initial public offering on the Catalist board that is set to raise net proceeds of about $5.72 million.

The company is offering 60 million invitation shares - comprising 30 million new shares and 30 million vendor shares - at 25 cents apiece, it said on Thursday (July 13).

About 1.28 million shares will be offered to the public, while the remaining 58.72 million shares will be placed with institutional investors.

The invitation shares represent 30 per cent of the enlarged share capital of the company, and are priced at about 6.95 times of its pro forma earnings per share of 3.6 cents for the year ended Dec 31, 2016.

Union Gas Holdings is among the biggest suppliers of bottled liquefied petroleum gas cylinders to households in Singapore, and for compressed natural gas to retail and industrial customers here.