GasHub Group, the Singapore- based gas pipeline and energy services specialist, is planning to raise up to A$10 million (S$10.4 million) on the Australian Securities Exchange (ASX) via a reverse takeover of Australian-listed Raffles Capital.
Raffles Capital will issue 150 million new shares to GasHub shareholders, valuing the company at A$30 million, and 50 million shares to the public at the issue price of 20 Australian cents per share.
GasHub group chief executive Aviers Lim said yesterday: "Listing on the ASX will provide us with a springboard to launch the company across the Asia-Pacific and market our eco-friendly and cost-effective energy solutions and technology innovations. The Australian market is very familiar with energy players, given that many of these companies are listed on the ASX."
In a filing to the ASX, GasHub added: "Low listing costs and strong performance are the ASX's competitive advantages.
"The new directors are of the view that capital from North America will play an important part in GasHub Group's future growth and that the ASX is the most ideal position to capture this capital in the Asia-Pacific region."
Founded in 1991 by Mr Lim, GasHub operates in two divisions: GasHubin Engineering, a gas energy provider for commercial and residential users, and GasHubin Technology, a developer of high- technology energy efficiency products.
GasHub will use the proceeds raised to grow its engineering division, which provides services to over 50 clients annually, including shopping malls such as ION Orchard and Wisma Atria, the Kopitiam chain of foodcourts and large healthcare institutions, including the Ng Teng Fong General Hospital and Sengkang General Hospital.
GasHub said the fragmented gas piping and engineering services market in Singapore is an opportunity to lift its dominance. Last year, it posted a revenue of S$10.8 million and a net profit of S$650,000.
A prospectus will be lodged with the ASX on July 13, and the public offer will close on Aug 11, according to GasHub's indicative timetable. The planned requotation date is Sept 15, subject to Raffles Capital shareholders' approval of the reverse takeover.