[SINGAPORE] Shares of adhesive manufacturer Infinity Development were up 1.3 per cent at Wednesday’s (Dec 3) open – as the company debuted on the Catalist board of the Singapore Exchange.
The counter opened at S$0.395, compared with its all-placement offer of 35.1 million placement shares at S$0.39 apiece. It ticked up to S$0.40 by 9.03 am, up 2.6 per cent or S$0.01, before easing back to S$0.395 by 9.09 am.
By market close, the counter had pared its early gains to close flat at S$0.39, with around 4.7 million shares transacted.
Infinity Development announced on Nov 21 that it was looking to raise net proceeds of S$11.1 million in an initial public offering (IPO) via the issue of all-placement shares.
Gross proceeds from the placement would be S$13.7 million, including estimated expenses related to the placement.
The bulk of the net proceeds, or S$6.2 million, will help expansion in overseas markets, reported The Business Times previously. Of the remaining amount, S$2.4 million will be used for expansion via acquisitions, joint ventures or strategic alliances, and a further S$2.4 million will be for general working capital.
Xander Capital is the sponsor and issue manager, and KGI Securities is the placement agent for the IPO.
The goal of the company is to become a leading footwear adhesive supplier in Asia. It has 400 employees and operates in 10 locations as at late-November.
Infinity Development believes there is strong growth in the footwear manufacturing industry, on the back of strong demand for athletic and casual shoes, as well as a rebound in global trade, among other factors.
The footwear adhesives market in Asia is projected to rise at a compound annual growth rate of 4.5 to 5.5 per cent in the next five years, hitting US$1.2 billion to US$1.8 billion by 2029, the company said.
The company markets its proprietary Zhong Bu and Centresin brands mainly in Bangladesh, Vietnam, Indonesia and China.
Additional reporting by Navene Elangovan and Ry-Anne Lim
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