Trans-China Automotive debuts on Catalist board at S$0.245, 6.5% above IPO price
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TRANS-CHINA Automotive Holdings (TCA) VI2 made its trading debut at S$0.245 on the Singapore Exchange's Catalist board on Thursday (Nov 11), 6.5 per cent or S$0.015 above its initial public offering (IPO) price of S$0.23.
The car dealership group was among the most active counters by volume in early trade. As at 9.13 am, the counter was trading 8.7 per cent or S$0.02 higher at S$0.25, with more than 5.2 million shares changing hands.
The company on Wednesday (Nov 10) announced that shares for its IPO were subscribed by 1.2 times. The public offer of 2.9 million shares was 8 times subscribed, while all 82.1 million placement shares were validly subscribed for.
Based on the offer price and the post-offer share capital, TCA's market capitalisation will be about S$134.4 million.
TCA was founded in 2009 by executive chairman and chief executive officer Francis Tjia who has more than 20 years of industry experience. Headquartered in Hong Kong and Shenzhen, TCA specialises in car dealerships in the premium and ultra-premium market segments under the BMW, McLaren and Lotus brands.
Its two main business segments are car sales, and provision of after-sale services including repairs and scheduled servicing, maintenance and inspection of cars. In addition, TCA also sells pre-owned cars that come mainly from customer trade-ins, auction companies and other suppliers of used cars and is not limited to the brands it carries.
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TCA plans to use the bulk of the S$16.3 million in net proceeds from the IPO to expand its dealerships, showrooms and service centres in cities where it has existing operations.
The remaining S$3 million will go towards growing its dealership network to new regions, among other things, while another S$2.3 million will be channelled towards general working capital.
RHT Capital is the issue manager and full sponsor, while UOB Kay Hian is the underwriter and placement agent.
READ MORE:
- Car dealership group Trans-China Automotive prices IPO at S$0.23 per share
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- Tikehau Capital submits application to SGX for S$200m SPAC IPO
- Who will show up at Singapore's tech IPO party?
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