Hong Kong-listed Metasurface launches S$9.72 million placement ahead of SGX Catalist dual listing

[SINGAPORE] Precision engineering services provider Metasurface Technologies has launched a S$9.72 million share placement at S$0.54 apiece, ahead of its planned dual primary listing on the Singapore Exchange’s Catalist board on Nov 4.

The company is offering 18 million new shares, giving it a market capitalisation of about S$90 million upon listing, indicated its offer document registered on Wednesday (Oct 28). The placement is open to retail and institutional investors in Singapore.

The application period closes at noon on Nov 2. UOB Kay Hian is the sponsor, issue manager and placement agent.

Metasurface, which has been listed on the Hong Kong Stock Exchange’s Growth Enterprise Market since July 2024, provides precision machining and welding services primarily in the semiconductor industry, as well as the aerospace and data storage sectors.

Founded in 2000, the Singapore-headquartered group operates production facilities in Singapore and Johor, Malaysia, and has about 70 computer numerical control machines. It is led by founder and chief executive Chua Chwee Lee, whose deemed interest in the company will fall to 33.02 per cent after the placement, from 37.02 per cent before.

The company intends to use the net proceeds of about S$7.28 million to fund business expansion, strengthen quality control and support general working capital needs.

Of the net proceeds, S$6 million will go towards business expansion, including the acquisition of five-axis machines and other advanced machinery and software. Some S$1 million is earmarked for quality control, while the remaining S$280,000 will be allocated to working capital.

Revenue growth

Metasurface’s revenue rose 8.9 per cent year on year to S$27 million in the six months ended June 2026, from S$24.8 million a year earlier. Net profit, however, fell 57.7 per cent to S$3.7 million from S$8.8 million.

The decline was partly due to a one-off S$6.4 million remeasurement gain recorded in the first half of 2025, when Metasurface reclassified its investment in MetaOptics as a financial asset. No such gain was recorded in the first half of 2026.

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Metasurface recorded an unrealised fair-value loss of S$13.9 million on its investment in MetaOptics in the first half of 2026, after a S$28.7 million fair-value gain for the whole of FY2025. Both figures were recognised in other comprehensive income rather than net profit.

The offer document also flagged risks arising from the group’s reliance on the semiconductor industry and a concentrated customer base. The sector accounted for about 95 per cent of revenue in the first half of 2026, while its major customers accounted for 85 per cent. One customer alone accounted for 27.2 per cent of revenue.

To broaden its business, Metasurface plans to deepen its presence in data storage, aerospace, and oil and gas, while expanding its customer base through potential joint ventures, acquisitions and strategic alliances.

The board intends to recommend dividends of up to 30 per cent of net profit for both FY2026 and FY2027.