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Construction service provider Reclaims Global seeks Catalist listing in Singapore
RECLAIMS Global, an eco-friendly integrated service provider in the construction industry, on Wednesday lodged a preliminary prospectus for a planned initial public offering (IPO) on the Singapore Exchange's Catalist board.
Details of the pricing, amount to be raised and timing of the offering have not yet been announced.
Reclaims Global specialises in the recycling of construction and demolition waste, customisation of excavation solutions, and operating fleet management. Its business comprises three main segments, namely recycling, excavation services, as well as logistics and leasing.
For the six months in fiscal 2019, Reclaims Global posted revenue of S$13.1 million, down 6.2 per cent from a year ago. This came on the back of a S$1.1 million decrease from its recycling segment, and a S$1.3 million decrease from its logistics and leasing segment, partially offset by a S$1.5 million increase from its excavation business.
For the same period, the company is expecting a loss of S$92,000, from a profit of S$684,000 a year earlier after recognising a portion, or S$0.8 million, of its share-based payment as part of listing expenses in its interim financial statement.
Excluding the share-based payment, profit from continuing operations, net of tax and total comprehensive income for the six months in 2019 will be S$708,000.
For the full year in fiscal 2018, revenue fell 7.5 per cent to S$27.5 million from S$29.8 million, while profit dropped 13.1 per cent to S$3.2 million.
The company does not have a fixed dividend policy and future dividends will depend on its earnings and financial position among other things.
At present, executive chairman Chan Chew Leh and executive director Tan Kok Huat each hold about 45 per cent of the company's total issued share capital.
Looking ahead, Reclaims Global noted that it will continue to focus on public sector construction projects.
Proceeds from the listing will be used to expand its operational capacity as well as its recycled product range. The remainder will be used to fund expansion through acquisitions, joint ventures or strategic alliances and for general working capital purposes.
Nonetheless, key risks to its business include a slowdown in the construction industry, greater competition, credit risks, project delays and regulatory changes, Reclaims Global noted.
SAC Capital is the sponsor, issue manager, underwriter and placement agent for this IPO.