[SINGAPORE] Shares of Deluge Corporation closed 6.7 per cent higher at the end of their first day of trading on the Singapore Exchange (SGX) mainboard on Friday (Oct 16), after the fire protection specialist’s initial public offering (IPO) was 3.86 times subscribed.
The shares opened at S$0.63, 5 per cent above the S$0.60 offer price, and then hit an intraday high of S$0.65 a share.
The closing share price of S$0.64 gave the company a market capitalisation of about S$92.8 million.
About 8.73 million shares changed hands on the debut trading day.
The IPO comprised 15.6 million shares at S$0.60 apiece, including 14.8 million placement shares and 800,000 shares for the public offer, Deluge said on Thursday.
The public offer was 11.97 times subscribed, with 327 valid applications for 9.53 million shares. Application monies amounted to about S$5.74 million.
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The placement shares were 3.42 times subscribed, attracting indications of interest for 50.63 million shares, worth about S$30.4 million. Investors included Lion Global Investors and UOB Asset Management.
Separately, cornerstone investors subscribed for 23.4 million new shares at the offer price, amounting to about S$14 million. They included Amova Asset Management Asia, Avanda Investment Management, HB Equity Partners and Whitefield Capital Management, alongside several individual investors.
The IPO and cornerstone tranche raised gross proceeds of about S$23.4 million. After listing expenses of S$3.27 million, Deluge expects net proceeds of about S$20.1 million.
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The firm plans to use the proceeds to fund business expansion and working capital, strengthen its operational capabilities, and pursue strategic partnerships, acquisitions, joint ventures and regional expansion.
Lee Wai Wah, executive director and group chief executive of Deluge, said: “Our listing gives us a stronger platform to pursue larger projects and capture opportunities from Singapore’s continued infrastructure development.
“We intend to build on our experience to grow our project portfolio, while expanding our inspection, testing, maintenance and upgrading services as our installed base increases.”
Deluge had an order book of about S$433.04 million as at Sep 16, which it expects to fulfil primarily over the next four financial years.
Founded in 1983, the company provides fire detection and protection systems for critical infrastructure, including hospitals, airports, educational institutions and shopping malls.
Its rail-related contracts include work on the Cross Island Line, the Tengah and Changi East depots, and the Rapid Transit System Link between Singapore and Johor Bahru.
Deluge is listed on the SGX mainboard under the stock code 9DC.