Fire-safety specialist Deluge Corp aims to raise S$23 million in IPO at S$0.60 a share

[SINGAPORE] Fire-protection specialist Deluge Corporation plans to raise S$23.4 million in gross proceeds from its mainboard listing priced at S$0.60 a share, as it eyes larger projects, acquisitions and regional expansion. Based on an enlarged share capital of 145 million shares, the offer price values the company at S$87 million. The offering and cornerstone tranche will raise net proceeds of about S$20.1 million.

Deluge’s shares are expected to start trading on Oct 16.

The proposed offering comprises 15.6 million new shares, including 14.8 million placement shares and 800,000 public offer shares. Cornerstone investors such as Amova Asset Management Asia, Avanda Investment Management, HB Equity Partners and Whitefield Capital Management, as well as several individual investors, have subscribed for a further 23.4 million shares. 

In an interview with The Business Times, group chief executive officer Lee Wai Wah said the listing comes as Deluge seeks to move beyond its traditional role as a fire-protection contractor and strengthen its identity as an engineering specialist. He said: “We started as a contractor. But because of the scale of the jobs, we have to up the game.”

This has meant taking on more complex engineering work, including fire engineering and hydraulic calculations as the business has grown, he added. Of the net proceeds, about S$9 million will be used for strategic partnerships, acquisitions, joint ventures and regional expansion. Another S$9 million will go towards participating in more tenders, securing more contracts and taking on larger projects, as well as working capital; the remaining S$2.1 million will fund infrastructure, facilities and operational capabilities. 

Founded in 1983, Deluge is now the largest player in Singapore’s fire detection and protection industry, with an estimated market share of about 8.3 per cent in 2025, Frost & Sullivan noted.

As at Sep 16, Deluge had an order book of about S$433 million, expected to be fulfilled primarily over the next four financial years. 

Revenue has risen 158 per cent since FY2021, from projects spanning transport, utilities, healthcare, aviation, commercial, residential, data centre and offshore and marine projects.

Group revenue fell 16.5 per cent to S$116.7 million in FY2026 from S$139.8 million in FY2025. Net profit fell to about S$11.8 million from S$17.9 million. 

SEE ALSO

Fire protection specialist Deluge Corp files preliminary prospectus for mainboard IPO

Lee attributed the weaker FY2026 performance to an unusually strong FY2025, when several major projects were being executed at peak levels. The lower revenue in FY2026 therefore reflected a “normalisation in activity”, he said.

Deluge intends to recommend dividends of at least 25 per cent of its net profit, excluding non-recurring and one-off items, for financial years 2027 and 2028.

Major fire-protection works, market share

Its contracts have included projects for Marina Bay Sands, Marina Bay Residences, Sengkang General Hospital, VivoCity, the Hyundai Motor Group Innovation Center Singapore, and Singapore’s first LNG terminal on Jurong Island.

Major transport projects include the Land Transport Authority (LTA)’s North-South Corridor worth S$109 million, and work at the Changi East Depot, Changi Airport Terminals 1 and 2, and the North-East, East-West, Circle and Downtown MRT lines.

Among recent wins was a S$73.5 million Cross Island Line contract awarded in April 2025, which is expected to cover works beyond 2030 and includes a 20-year maintenance option for the LTA, Lee said.

In total, Deluge has secured more than S$60 million in new projects since January, Lee added.

Many of Deluge’s customers continue to work with the group beyond the initial construction phase, Lee said. “Once you’ve built that trust and confidence, the relationship continues beyond the initial project.”  

For instance, at Marina Bay Sands (MBS), the group was involved in fire protection works for the three hotel towers, Sands SkyPark, The Shoppes at Marina Bay Sands, and the Sands Expo and Convention Centre, in a contract worth more than S$40 million. 

Deluge subsequently took on additions and alterations works across the property, including MBS’ casino, hotel and exhibition facilities such as the ArtScience Museum, in addition to the dining and The Shoppes areas, Lee said. 

Ongoing maintenance and upgrading yielded the company gross profit margins ranging from 44 to 53 per cent in the last three years.

Data centres a new business area

Data centres are a new business area for Deluge. It completed fire-protection works for 12 data centre blocks in Johor between December 2022 and June 2026, including at GDS Nusajaya Tech Park, a hyperscale data centre campus.  

Data centres now account for about 90 per cent of Deluge’s work in Johor, Lee said. Work on these projects can typically be completed in about six months, compared with three to four years for major rail projects.

Malaysia accounted for 9.6 per cent of Deluge’s FY2026 revenue.

The group is looking to build on its existing presence in Malaysia, with Kuala Lumpur among the markets it is exploring. It has also identified opportunities in warehouses and service and maintenance work in Thailand.

Deluge is exploring acquisitions, partnerships and joint ventures as part of its growth plans, and Lee sees scope for consolidation in Singapore’s fire-protection industry. 

Still, manpower remains an important consideration as it looks to grow. The group has more than 400 workers and about 50 engineers in Singapore, and operates a training centre accredited by the Building and Construction Authority.