DeClout unit Procurri lodges draft prospectus for mainboard listing (Amended)

PROCURRI Corp, a subsidiary of Catalist-listed DeClout, has lodged its preliminary prospectus for a listing on the mainboard of Singapore Exchange (SGX).

The provider of data centre equipment and lifecycle services will be the first tech company to be listed on SGX's mainboard this year.

The exercise will involve an offer of 68.88 million new shares - 60 million placement shares and 8.88 million public offer.

The IT distribution and maintenance services firm with operations in over 80 countries and mainly in the United States, UK, Mexico, Singapore and Malaysia made a net profit of S$8.8 million in 2015 on revenue of S$123 million.

A bulk or 81 per cent of its revenue in 2015 was derived from IT distribution.

In 2014, it earned S$2.8 million on the back of S$77 million revenue.

The proceeds from the initial public offering will be used for mergers and acquisitions or joint ventures, to strengthen its infrastructure, loans repayment to DeClout and working capital.

While the company does not have a fixed dividend policy, its directors plan to recommend and distribute dividends of 25 per cent of net profit for financial years 2016 and 2017.

The proposed listing is in line with DeClout's growth strategy to identify, incubate, scale and harvest growing businesses, and will potentially mark its first successful spin-off.

Shares of DeClout rose 1.5 Singapore cents or nearly 7 per cent to 23.5 Singapore cents as at 9.38am on Wednesday.

Amendment note: An earlier version of this article incorrectly stated that Procurri Corp will be SGX's first mainboard listing for the year. It will be the first tech company to be listed on SGX's mainboard this year. The article above has been revised to reflect this.