Infinity Development aims to raise net proceeds of S$11.1 million in Catalist IPO

[SINGAPORE] Hong Kong-based adhesive manufacturer Infinity Development is looking to raise net proceeds of S$11.1 million in an initial public offering (IPO) to fuel its expansion plans, through the issuing of 35.1 million placement shares at S$0.39 apiece.

Including the estimated expenses relating to the placement, gross proceeds from the placement will be S$13.7 million.

The company is expected to list on the Singapore Exchange (SGX) Catalist board on Dec 3 with a market capitalisation of S$123.5 million.

The group is engaged principally in the manufacture and sale of adhesives and other related products used by footwear manufacturers. It also has its own brands of adhesive products that are produced and sold primarily in Vietnam, Indonesia, Bangladesh and China.

Infinity Development aims to become a leading footwear adhesive supplier in Asia, building on competitive strengths such as prudent business strategies and maintaining cost discipline. It operates in 10 locations with 400 employees.

The bulk of the net proceeds, or S$6.2 million, will go towards expanding in overseas markets, said the company. Of the remaining amount, S$2.4 million, will go towards expansion through acquisitions, joint ventures or strategic alliances, while a further S$2.4 million will serve as general working capital.

The company’s controlling shareholder is its chief executive officer Ieong Un. He will hold 66.5 per cent stake in the company after the share placement.

Based on its unaudited financials for the six months ended Mar 31, 2025, Infinity Development’s net profit rose 38 per cent year on year to HK$56.6 million (S$9.4 million), from HK$41 million in the year-ago period.

Profit for the latest six-month period would have been even higher at HK$59.6 million, if not for one-off listing expenses of HK$3 million.

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Its revenue was up 23 per cent at HK$409.3 million in the first half of FY2025, from HK$332.5 million in H1 FY2024.

As at Mar 31, 2025, the group’s earnings per share stood at HK$0.201, based on a pre-placement share capital of 281.7 million shares. This was up from HK$0.146 per share in the prior year.

The company said it has adopted a dividend policy to allow shareholders to participate in its profits and for the company to retain adequate reserves for future growth.

It did not pay dividends between FY2022 to the latest practicable date, but has paid aggregate dividends over the same period. Its aggregate dividend for the most recent financial year of FY2024 was HK$43.4 million.

Infinity Development believes there is strong growth in the footwear manufacturing industry, on the back of strong demand for athletic and casual shoes as well as a rebound in global trade, among other factors.

In Asia, the footwear adhesives market is projected to increase at a compound annual growth rate of 4.5 to 5.5 per cent in the next five years, reaching US$1.2 billion to US$1.8 billion by 2029, the company said.

But it noted its exposure to geopolitical risks such as tariffs imposed by countries such as the United States. Other risks include a potential increase in costs and operating expenses amid inflationary pressures, a highly competitive market, and its reliance on a handful of major customers, which accounted for over 30 per cent of revenue from FY2022 to H1 FY2025.

Xander Capital is the sponsor and issue manager, while KGI Securities is the placement agent for the IPO.