COMMERCIAL interior decoration and mechanical, electrical and plumbing engineering company Attika Group is set to raise S$4.6 million in gross proceeds as it issues 21 million placement shares at S$0.22 per share.
The company is expected to list on the Singapore Exchange Catalist board on Nov 8 with a market cap of S$29.9 million based on the issue price.
Its current controlling shareholder, managing director and executive chairman Steven Tan, currently holds 100 per cent of the company’s total issued share capital. After the share placement, he will continue to hold an 84.6 per cent stake in the company. (*See clarification note)
Of the proceeds raised, S$1.3 million will go towards the expansion of the company through acquisitions, joint ventures, strategic alliances and potential investments into overseas ventures.
A further S$957,000 will be used to acquire new equipment, plant and other machinery, while another S$957,000 will go towards general working capital.
The balance of S$1.4 million will be used to fund the company’s listing expenses.
For the financial year ended Dec 31, 2023, Attika’s net profit rose 10.1 per cent to S$2.3 million, while revenue climbed 8.3 per cent to S$27 million. The company added that revenue for the first three months of this year has already reached S$22.1 million.
While the company does not have a fixed dividend policy, its board of directors intends to distribute dividends of at least 20 per cent of the company’s profit attributable to equity holders in FY2024 and FY2025.
*Clarification note: Steven Tan’s total shareholding was stated to be 86.4 per cent post-placement in an earlier version of the story. We have since updated the story to reflect the shareholding reflected in Attika’s final offer document instead of final product highlights sheet.
