Deluge shares close 6.7% higher on first day of mainboard listing
[SINGAPORE] Shares of Deluge Corp closed 6.7 per cent higher on their first day of trading on the Singapore Exchange (SGX) mainboard on Friday (Oct 16), after the fire protection specialist’s initial public offering was 3.86 times subscribed.
The shares opened at S$0.63, 5 per cent above their S$0.60 offer price, and then hit an intraday high of S$0.65.
About 8.73 million shares changed hands throughout the day. The closing price of S$0.64 gives Deluge a market capitalisation of about S$92.8 million.
Deluge’s IPO comprised 15.6 million shares at S$0.60 apiece, including 14.8 million placement shares and 800,000 shares for the public offer.
The public offer was 11.97 times subscribed, with 327 valid applications for 9.53 million shares. Application monies amounted to about S$5.74 million.
The placement shares were 3.42 times subscribed, attracting indications of interest for 50.63 million shares, worth about S$30.4 million. Investors included Lion Global Investors and UOB Asset Management.
Separately, cornerstone investors subscribed for 23.4 million new shares at the offer price, amounting to about S$14 million. They included Amova Asset Management Asia, Avanda Investment Management, HB Equity Partners and Whitefield Capital Management, alongside several individual investors.
The IPO and cornerstone tranche raised gross proceeds of about S$23.4 million. After listing expenses of S$3.27 million, Deluge expects net proceeds of about S$20.1 million.
The group plans to use the proceeds to fund business expansion and working capital, strengthen its operational capabilities, and pursue strategic partnerships, acquisitions, joint ventures and regional expansion.
Lee Wai Wah, executive director and group CEO of Deluge, said: “Our listing gives us a stronger platform to pursue larger projects and capture opportunities from Singapore’s continued infrastructure development.
“We intend to build on our experience to grow our project portfolio, while expanding our inspection, testing, maintenance and upgrading services as our installed base increases.”
Deluge had an order book of about S$433 million as at Sep 16, which it expects to fulfil primarily over the next four financial years.
Founded in 1983, it provides fire detection and protection systems for critical infrastructure, including hospitals, airports, educational institutions and shopping malls.
Its rail-related contracts include work on the Cross Island Line, the Tengah and Changi East depots, and the Rapid Transit System Link between Singapore and Johor Bahru.
