Indonesian coal firm Resources Global makes year's first SGX debut at S$0.21

THE Singapore bourse on Friday saw its first trading debut of the year, with Resources Global Development (RGD) opening on Catalist at S$0.21.

The opening price is 5 per cent above the initial public offering (IPO) price of S$0.20. At 10.09am on Friday, the counter was trading at S$0.215, up 0.5 cent or 0.2 per cent on the day.

The Indonesian coal trading and shipping company had issued 15 million placement shares to raise gross proceeds of some S$3 million and net proceeds of around S$1.6 million.

Net proceeds from the IPO will be used for general working capital purposes, according to the company's final offer document lodged on Jan 14. 

Francis Lee, RGD chief executive, said: "We will tap our listing status to further augment our operations and footprint as we chart new growth."

The firm plans to expand its customer base and grow its range of sectors and geographical coverage, according to its chief financial officer Thomas Yeo. Listing on the Singapore Exhange (SGX) marks "the start of a strategic journey" for RGD, Mr Yeo added.

For fiscal 2018, the company posted a net profit of S$2.2 million, a surge of 86.4 per cent from S$1.2 million a year ago. Revenue more than doubled to S$44.8 million, from S$19.2 million in FY2017.

Earnings per share prior to the placement stood at three Singapore cents for FY2018, up from 1.6 cents in the year prior.

RGD currently does not have a fixed dividend policy.

Before the IPO, the company's sole direct shareholder was Singapore-incorporated Deli International Resources. It now holds a 83.8 per cent stake in RGD after the placement.

Deli's shareholders are Arifin Tan and four siblings Djunaidi Hardi, Juhadi, Limas Ananto and Arifin Ang.

Mr Hardi is the father of RGD's executive director and chief operating officer, Salim Limanto.

ZICO Capital is the company's sponsor while UOB Kay Hian was the placement agent. Withers KhattarWong advised RGD on the IPO.

The Withers KhattarWong team's "keen understanding of Indonesian cross-border projects was especially helpful in providing astute solutions throughout the IPO process", Mr Yeo said.

RGD has a market capitalisation of about S$18 million. With its listing, the total number of commodities companies on the Singapore bourse is now 32, with a combined market cap of around S$42.5 billion, SGX said on Friday.

On Catalist, there 217 companies listed, with a total market cap of about S$9 billion.