Lum Chang Creations’ initial public offering (IPO) is approximately 2.0 times subscribed based on the invitation for all 49 million shares, raising $12.25 million.
Lum Chang Creations, on July 9, launched its IPO at 25 cents a share with a view to raise gross proceeds of $8.75 million. The company is the interior contracting and urban revitalisation arm of Mainboard-listed Lum Chang Holdings. It lodged its preliminary offer document for a spin-off listing on June 23.
Based on the valid applications received for all 49 million shares as at the close at mid-day on July 17, Lum Chang Creations’ invitation was about 2.0 times subscribed, raising gross proceeds of $12.25 million. Of the sum, $8.75 million was from new shares and $3.5 million from vendor shares.
Under the public offer of 1 million shares, Lum Chang Creations received 599 valid applications, amounting to 47.3 million shares or $11.8 million.
The placement shares - 48 million of them - were also fully subscribed, raising some $12 million.
The invitation saw strong interest and commitment from various investors, including Lion Global Investors Limited, Ginko-AGT Alpha Fund VCC, Nikko Asset Management Asia Limited, Asdew Acquisitions Pte Ltd and ICHAM Master Fund VCC.
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Lion Global Investors has been allocated six million shares, while Ginko-AGT Alpha Fund VCC has been allocated 3.73 million shares. Nikko Asset Management Asia Limited, Asdew Acquisitions Pte Ltd and ICHAM Master Fund VCC have been allocated 2.46 million shares each.
Based on the invitation price and the company’s post-invitation share capital of 315 million shares, Lum Chang Creations will have a market capitalisation of $78.75 million.
RHT Capital is the issue manager and full sponsor and CGS International Securities Singapore is the underwriter and placement agent for the invitation.
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“Lum Chang Creations' listing on the SGX-ST (Singapore Exchange Securities Trading Limited) represents a significant milestone as we enter an exciting phase of growth within Singapore's dynamic urban revitalisation sector,” says Lum Chang Creations’ managing director Lim Thiam Hooi.
He adds that the invitation will enable the company to “strengthen [its] capabilities and expand [its] market presence” when there is “a robust outlook for private sector projects in Singapore's construction industry” as well as “promising prospects in the urban revitalisation specialist industry” due to the government’s commitment towards enhancing and protecting local heritage and the promotion of “adaptive reuse initiatives”.
“We believe that we are well-positioned to capitalise on emerging opportunities under initiatives from the National Heritage Board’s ‘Our SG Heritage Plan 2.0’, which range from modernist building conservation to the potential designation of Singapore's second UNESCO world heritage site,” Lim continues.
Lum Chang Creations will commence trading at 9am on July 21 under the trading name of “Lum Chang Creat” and trading code of “LCC”.
