Infinity Development Holdings, a Hong Kong-based glue maker, has on Nov 21 launched its Singapore IPO, seeking gross proceeds of some $13.7 million in an all-placement offer of 35.1 million shares at 39 cents each.
The company, founded in 1990 by chairman and CEO Ieong Un, is already Hong Kong-listed since 2010.
Upon completion of the placement, 70-year-old Un will beneficially own a stake of around 66.5%.
The company, whose customers are mainly shoe makers based in the region, plans to raise new funds to fund regional expansion.
Infinity Development runs production facilities and supply partnerships in Vietnam, China, and Indonesia, and its products are shipped to key countries including Vietnam, Indonesia, Bangladesh, China and India.
As listed by the company in its IPO documents, it sells to around 200 different customers but an unnamed Customer A alone accounted for between 19.4% and 23.8% of the revenue for the periods FY2022 to 6MFY2025.
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There are no long-term contracts with its customers, who place orders "from time to time", the company says.
For its FY2024, it booked an EPS of 5.4 cents, up from 3.6 cents reported for FY2023. At this level, the IPO is priced at a historical FY2024 PE of 7.2 times.
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In the most recent 6MFY2025, it reported earnings of HK$56.6 million, up 38% y-o-y; in EPS terms, 3.1 cents and 2.2 cents respectively.
Revenue in the same period increased from HK$332.5 million to HK$409.3 million.
This issue's sponsor and issue manager is Xandar Capital and KGI Securities (Singapore) is the placement agent. This placement is not underwritten.
Trading of the shares will commence on Dec 3.
Infinity Development's Hong Kong traded shares closed at HK$2.67 on Nov 21, up 34.85% year to date, valuing the company at HK$709.8 million.
