Two companies lodge preliminary Catalist listing documents as IPO interest returns
Raphael Lim
TWO companies have lodged their preliminary offer documents for Catalist listings in a sign that more activity could be returning to the local initial public offerings (IPO) market.
Art outsourcing and game development company Winking Studios, and human resource service provider Sheffield Green made their respective lodgements to the Singapore Exchange’s (SGX) Catalodge portal on Thursday (Sep 28).
If the two companies proceed with their listing plans, they would take the number of IPOs on the Singapore market this year to five, following the earlier Catalist listings of Ever Glory United, Pasture Holdings and YKGI.
Winking Studios provides complete end-to-end art outsourcing and game development services across platforms such as console, PC, online and handheld content for the video games industry, according to its preliminary product highlights sheet (PHS).
The Singapore-headquartered company has its principal places of business in Taiwan and China, where it has seven studios altogether. It cited an independent market report, which ranked it third in Asia and fourth globally in terms of revenue for game art outsourcing in 2022.
The company is currently majority-owned by Acer Gaming, which holds a 55 per cent stake. Acer Gaming is a subsidiary of Taiwan Stock Exchange-listed computer company Acer. Winking Studios intends to raise funds through placement and cornerstone shares. Acer Gaming is included among the cornerstone investors.
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Winking Studios said it intends to use the proceeds from the IPO to expand its operations globally, make strategic acquisitions, and explore the use of artificial intelligence in its art outsourcing segment.
During the financial year ended December 2022, the group generated revenue of US$24.5 million, up from US$23.7 million a year earlier. Net profit, however, fell to US$1 million, from US$3.1 million over the same period.
Meanwhile, Sheffield Green’s preliminary PHS indicated that it intends its offering to have both public offer shares, as well as placement shares.
The Singapore-headquartered company is a human resource service provider for the renewable energy industry – mainly the offshore wind sector – and it has subsidiaries incorporated in Singapore and Japan.
Sheffield Green intends to use proceeds from the IPO to expand the scale of its existing business and geographical coverage. It is also looking to identify new service offerings and capabilities to serve its clients.
Revenue for the nine months ended June 2023 rose to US$14.3 million from US$4.7 million in the year-ago period. The increase was mainly due to an increase in projects secured as well as the number of personnel provided for existing projects primarily in Taiwan and France.
The company reported a net profit of US$2.5 million for the first nine months, reversing from the net loss of US$975 in the same period a year earlier.
IPO activity in Singapore and most global markets have remained muted over the past two years, amid rising interest rates as central banks combat rising inflation. The three listings that have taken place on the junior Catalist board so far this year have raised just S$27.9 million in proceeds.
There have been no mainboard IPOs on the SGX since January 2022, when the three special purpose acquisition companies made their trading debut.
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