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Far east launches catalist ipo

Far East Group launches Catalist IPO
 
Published on Jul 26, 2011
 

 
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Far East Group’s chief operating officer David Leng (left) and chief executive Steven Loh talking about the group’s IPO, which is expected to net $3.5 million. — PHOTO: LIANHE ZAOBAO
By Daniel Ho
A LOCAL provider of refrigeration and air-conditioning systems launched its initial public offering (IPO) on the Catalist board yesterday.

Far East Group distributes agency products as well as heat exchangers and condensing units under its in-house ‘Eden’ brand. It also provides design and consultancy services.

No shares will be offered to the public. It will issue 18.8 million shares on placement, representing 26 per cent of the group’s enlarged share capital. The shares are priced at 27 cents apiece.

There should be net proceeds of about $3.5 million, after $1.6 million in expenses are deducted.

The cash will be used to expand sales and distribution networks overseas, increase manufacturing capacity, and to fund research and development, as well as for general working purposes.

Chief executive Steven Loh said: ‘We believe the listing will enhance our public image in Singapore and overseas and enable us to tap the capital markets for business expansion.’
A LOCAL provider of refrigeration and air-conditioning systems launched its initial public offering (IPO) on the Catalist board yesterday.

Far East Group distributes agency products as well as heat exchangers and condensing units under its in-house ‘Eden’ brand. It also provides design and consultancy services.

No shares will be offered to the public. It will issue 18.8 million shares on placement, representing 26 per cent of the group’s enlarged share capital. The shares are priced at 27 cents apiece.

There should be net proceeds of about $3.5 million, after $1.6 million in expenses are deducted.

The cash will be used to expand sales and distribution networks overseas, increase manufacturing capacity, and to fund research and development, as well as for general working purposes.

Chief executive Steven Loh said: ‘We believe the listing will enhance our public image in Singapore and overseas and enable us to tap the capital markets for business expansion.’

He is confident of his firm’s prospects: ‘Our key business is the provision of essential refrigeration services, which is widely seen as an evergreen industry, underpinned by growing affluence across the world.’

He cited market research which forecasts that global demand for heating, ventilation and air-conditioning systems will increase by more than 6 per cent a year until 2014.

‘In particular, the demand for products in the Asia-Pacific region is expected to outpace the global average and increase by 6.6 per cent per annum,’ he added.

Far East’s revenue grew from $29.2 million in 2008 to $32.6 million last year, while net profit rose from $960,000 to $4.55 million.

The IPO opened yesterday and will close on Aug 4. The stock is expected to commence trading on Aug 8.

 

 

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