Attika Group eyes expansion into Malaysia, manufacturing sector after IPO

SHARES of Singapore Exchange (SGX) newcomer Attika Group have been on a tear since its initial public offering (IPO).

For its listing on the Catalist board, the company issued 21 million placement shares at S$0.22 per share, with no public tranche.

In its debut on Nov 8, the counter closed at S$0.235 – some 6.8 per cent above its IPO price. And it has continued to climb.

Shares of Attika Group have risen another 6.4 per cent since its first trading day to close at S$0.25 last Friday (Nov 15), giving it a market capitalisation of about S$34 million.

Post-IPO, the next step for the commercial interior decoration and engineering company is beyond Singapore, its managing director and executive chairman Steven Tan told The Business Times.

“For our expansion initiatives, proceeds will be used towards expanding into new markets, capacity building, enhancing technology adoption and diversifying into new sectors,” said Tan.

Some S$1.3 million of the S$4.6 million in gross proceeds raised from the IPO will go towards the expansion initiatives.

Strategic growth into neighbouring markets such as Malaysia will focus on areas which are “ancillary, complementary or strategic” to Attika Group’s existing core operation.

Such businesses include interior fit-out services catering to different market segments, downstream operations to support the core business, and dormitory spaces to cater to its workers’ accommodation needs, said Tan.

He added that the company also plans to expand its manufacturing capacity, such as for carpentry and metalworks to meet product demand for future projects.

“By supplying our own products, we aim to have greater control over project costs, lead times and quality. To support this initiative, we intend to purchase new equipment such as computer numerical control equipment and machinery to automate production processes.”

The company’s current order book stands at S$33.9 million, with clients mostly sourced from the public sector and also commercial entities in the private sector such as banks and malls.

Tan noted that the company also aims to secure projects in both the residential and hospitality sectors, leveraging its track record in the commercial market segment.

Apart from the S$1.3 million for the expansion plans, the remaining proceeds will be allocated for general working capital purposes to improve operational efficiency, said Tan.

From five employees to 100

Attika Group was formerly known as Attika Interior + MEP, which was incorporated in 2014. This was when the company first started as a subcontractor with about five employees.

“We quickly established a strong reputation in the industry providing mechanical and electrical services, and general renovation works,” said Tan.

The company today has grown into a full-service provider for commercial fit-out works, with more than 100 employees and in-house manufacturing capabilities.

Its public listing was not only a means to raise capital, but also a platform to amplify the company’s presence, whether to attract more talents or seize other growth opportunities in Singapore and beyond, said Tan.

Tan is also the controlling shareholder of Attika, with a 84.6 per cent stake in the company following the IPO placement.