5E Resources ends Catalist debut at S$0.265; 1.9% above IPO price

SCHEDULED waste management company 5E Resources ended its debut on the Singapore Exchange’s Catalist board on Thursday (May 12) 1.9 per cent, or S$0.005, above its initial public offering (IPO) price of S$0.26. 

This gives the company a market capitalisation of S$39.1 million as it trades at 14.7 times its earnings. It posted a net profit of RM8 million (S$2.6 million) for the year ended Dec 31, 2020. The theoretical earnings per share of the company stood at S$0.018 in the same period, based on the enlarged share capital of 147.5 million shares post-placement. 

The company said that S$3.9 million of the S$8 million in net proceeds raised would go towards acquiring an off-site storage facility to serve small quantity waste generators in central peninsula Malaysia. 

Another S$2.2 million of the proceeds would be invested in new facilities, plants, machinery and equipment to enhance production efficiency and capacity. 

The remainder would go towards other business expansion expenditure and general working capital purposes. 

In a bourse filing on Wednesday, the company announced that the 2 million offer shares were 3.5 times subscribed, while the 36.5 million placement shares that it had offered were also fully subscribed. 

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In a press statement on Thursday, chief executive Lim Te Hua said that the company was “very encouraged” by the response to the IPO.

“We believe our public listing gives investors the opportunity to participate in an industry that is growing in tandem with rising awareness about environment impact responsibilities and liabilities,” he said.

Substantial subscribers to the placement include Shashithran A/L Raman, who was allotted 3.8 million shares, as well as Chong Khai Siang and his parent Chong Yoon On, who were each allotted 3 million shares.