SINGAPORE (THE BUSINESS TIMES) - Water treatment company Memiontec Holdings made its debut on the Singapore Exchange's (SGX) Catalist board on Thursday (March 5) at 22.5 cents apiece, unchanged from its initial public offering (IPO) price.
At 10.14am, the counter was trading at 22.5 cents, with some 417,000 shares having changed hands.
Memiontec currently operates in Singapore, Indonesia and China, and has more than 20 years of experience in the field of water and wastewater management services, SGX said in a news release.
The company is known for clinching the $33.2 million upgrading project for the Tuas South Desalination Plant from PUB, after the national water agency took it over from the embattled Hyflux.
Tay Kiat Seng, executive chairman and CEO of Memiontec, said the firm has built a "sizeable regional business", tapping the growing demand for treated water in the region, particularly Indonesia.
Similarly, Mohamed Nasser Ismail, global head of equity capital markets at SGX, noted that water sustainability is a key agenda not just in Singapore but within the region as well.
"Demand for water is expected to grow exponentially along with urbanisation, industrial and agricultural needs, and the company is well-positioned to tap into this opportunity," added Mr Nasser.
On Feb 21, Memiontec lodged its final prospectus, launching its IPO of some 33.5 million placement shares at 22.5 cents each.
The subscribers comprise employees, customers, suppliers and strategic investors and there is no public offer. The placement represents about 15.2 per cent of the enlarged share capital of the company. The remaining stake will be mainly held by Mr Tay and managing director Soelistyo Dewi Soegiharto, who are co-founders of the group. Ms Dewi is also Mr Tay's wife.
In an interview with The Business Times, Mr Tay said that the IPO will enable the group to continue expanding its businesses in existing markets, as well as venture into new ones, or explore merger and acquisition opportunities in the longer term.
With a market cap of close to $50 million, the listing of Memiontec Holdings brings the total number of companies listed on the Catalist board to 218, with a combined market cap of about $9 billion.
Note: This story has been edited for clarity.
