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Secura offers 112m shares with detachable warrants
SECURITY firm Secura Group, whose key shareholders include remisier king Peter Lim, on Wednesday offered 112 million shares at 25 Singapore cents in its initial public offering (IPO).
The shares, to be listed on the Catalist board, come with 224 million free detachable warrants on the basis of two warrants for every one share successfully subscribed.
Only four million shares will be offered to the public for subscription, while the remaining 108 million shares will be placed. The warrants, which will trade separately on Catalist, may be converted to one new share at an exercise price of S$0.35 each and have an exercise period of three years, starting from the date of issue of the warrants.
Secura is led by chief executive officer Paul Lim, formerly the commander of Tanglin Police Division and deputy director of various departments in the Singapore Police Force. Its substantial shareholders include Mr Lim, UOB-Kay Hian executive chairman and managing director Wee Ee Chao and City Developments. They will collectively own about 52.7 per cent of the group after the IPO.
Apart from providing security guard services, Secura owns one of the largest cheque-printing businesses in Singapore, printing and supplying chequebooks and account passbooks for various banks. It also provides printing of parking coupons and betting slips and other value documents such as share certificates, cash vouchers and postage stamps for its customers, which include financial institutions and statutory boards.
It plans to use the bulk of its net proceeds of S$26 million from the IPO to expand its security guarding business; expand its cyber security, technology and systems integration business; as well as upgrade its security printing equipment. It also intends to improve its corporate infrastructure.
In FY2014, Secura recorded a profit of about S$8.2 million. Excluding a one-off net gain of about S$5 million recognised in FY2014, net profit would have been S$3.2 million, which represents a compound annual growth rate (CAGR) of 15 per cent from about S$2.4 million in FY2012. Revenue grew at a CAGR of 27 per cent from about S$18.9 million in FY2012 to S$30.4 million in FY2014.
The IPO will close at noon on Jan 26. Trading of the shares listed is expected to commence on a "ready" basis at 9am on Jan 28.
United Overseas Bank is the sponsor and issue manager in connection with the IPO, while CIMB Securities (Singapore) is the underwriter and placement agent.