LS 2 Holdings ends Catalist debut at S$0.88, up from IPO price of S$0.20
CLEANING services company LS 2 Holdings (ENV) ended its trading debut on the Singapore Exchange's Catalist board on Thursday (Feb 24) at S$0.88, up from its initial public offering (IPO) price of S$0.20.
By 10.35 am, shares of LS 2 were trading at S$0.85, 2.8 times the opening price of S$0.295, with 570,100 shares changing hands.The counter then made slight gains over the course of the first half of the trading day to finish at S$0.87 as at the mid-day break.
In the second half of the trading session, the stock rose to hit an intraday high of S$1.60 at 1.58 pm. The counter then pared some gains as low as S$1.20 before touching S$1.50 again at 2.30 pm.
Thereafter, the counter lost some steam, falling to S$0.90 at 3.30 pm. LS 2 shares finished the day at S$0.88, with some 0.7 million shares traded.
The company was looking to sell 27.75 million shares at a price of S$0.20 apiece to raise total proceeds of S$5.6 million. The IPO will not have a public tranche.
The estimated net proceeds, after deducting expenses relating to the placement, will be S$4.4 million. This placement represents 15 per cent of LS 2 Holdings' post-placement share capital of 185 million shares. The group will have a theoretical market capitalisation of S$37 million after the placement.
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A bulk of the net IPO proceeds - S$3 million - will be used to fund its business expansion plans. This includes strengthening LS 2's market position in Singapore, expanding the scope of service offerings, engaging in strategic acquisitions and joint venture partnerships, as well as investing in equipment and technology.
The remaining S$1.4 million of the proceeds will be spent on working capital, the company said previously.
LS 2 chief executive and executive director Alvin Ong said in a press statement: "We believe the listing is an important platform that will boost the brand value of the company and create new business opportunities."
The company offers conservancy, facilities cleaning, housekeeping, school cleaning, road and beach cleaning services, as well as pandemic disinfection services for both the public and private sectors in Singapore.
Town councils, facilities managers for commercial and private residential properties, public and private education institutions and private companies are some of the company's customers.
LS 2 intends to diversify its offerings to include horticultural services and infrastructure-level cleaning services such as road cleaning services and waste management services.
RHT Capital is the full sponsor and issue manager for the IPO, while Soochow CSSD Capital Markets (Asia) is the placement agent.
READ MORE: Cleaning services company LS 2 Holdings to raise S$5.6m in Catalist listing
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