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Reclaims Global launches Catalist IPO at 23 S cents per share
ECO-friendly construction service provider Reclaims Global launches on Friday its initial public offering (IPO) of 20 million shares at S$0.23 each.
The offer opens at 6.00pm on Friday and will close at 12pm on March 7, the company said in a media release. The shares are set to debut on the Singapore Exchange’s Catalist board on March 11.
The offer comprises 19 million new shares and one million vendor shares, representing approximately 15.3 per cent of Reclaims Global's enlarged post-IPO share capital of 131 million shares. Of the 20 million shares offered, two million are available for public offer, 13 million for placement, and five million are reserved for management, staff and business associates.
Of the net proceeds of S$2.76 million, S$0.6 million will be used to expand its operational capacity through investment in more plant and equipment and its enterprise resource planning solution. Approximately S$0.5 million will be used to expand its recycled product range, while S$0.3 million is earmarked for expansion by way of acquisitions, joint ventures and/or strategic alliances. The remaining S$1.36 million will be used for general working capital purposes.
After the placement, founders Chan Chew Leh and Tan Kok Huat will remain the controlling shareholders, with each holding 38.1 per cent of the company's share capital.
Reclaims Global specialises in recycling construction and demolition (C&D) waste, customising excavation solutions and operating fleet management.
The group believes its growth will be driven by domestic growth in public infrastructure works, boosted by Singapore's projected population increase to about 6 million by 2020 and upcoming public housing developments and infrastructure projects like Changi Airport Terminal 5 and the Cross Island MRT line.
It also sees higher use of recycled and waste materials as mainstream building products, with advances in repurposing C&D waste and the government's initiatives to incentivise building and using green buildings. More companies are also being prompted by environmentally conscious end-customers to design products sustainably and recycle more of their waste.
"Over the decade, we have built a strong reputation in the building and construction industry by providing effectively and timely excavation solutions to our clients," CEO Andrew Chew said in a statement.
"Apart from repurposing C&D waste into recycled construction materials, we have been exploring a new growth business - which is converting organic wastes into recycled hard board that has the potential to be a sustainable replacement for plywood - as building material and as a furnishing material that is extensively used in our daily lives."
He added that part of the IPO proceeds would go to expanding operational capacity and efficiency in order to support the anticipated increase in business.
SAC Capital Private Limited is the sponsor, issue manager, underwriter and placement agent for the IPO.