Infinity Development lodges preliminary document for Catalist IPO

[SINGAPORE] Infinity Development, a Hong Kong-based adhesive manufacturer, on Tuesday (Sep 30) lodged its preliminary prospectus for a listing on the Singapore Exchange’s Catalist board. 

In its offer document, the group said it is engaged principally in the manufacture and sale of adhesives and other related products used by footwear manufacturers. It also has its own brands of adhesive products that are produced and sold primarily in Vietnam, Indonesia, Bangladesh and China. 

Infinity Development aims to become a leading footwear adhesive supplier in Asia, building on competitive strengths such as prudent business strategies and maintaining cost discipline. It operates in 10 locations with 400 employees.

The company plans to use a portion of the initial public offering proceeds for overseas expansion, as well as acquisitions, joint ventures or strategic alliances. The rest will go towards general working capital and listing expenses. 

In particular, it is considering expansion in India, where it has two leases for office and factory spaces. However, the group said it has not commenced or committed to further expansion plans in the country.

Riding industry growth

Based on its unaudited financials for the six months ended Mar 31, 2025, Infinity Development’s net profit rose 38 per cent year on year to HK$56.6 million (S$9.4 million), from HK$41 million in the year-ago period.

This excludes one-off listing expenses of HK$3 million, which, if included, would have brought profit attributable to equity holders to HK$59.6 million, the company said. 

Its revenue was up 23 per cent at HK$409.3 million in the first half of FY2025, from HK$332.5 million in H1 FY2024. 

Its Vietnam market was the biggest revenue contributor, making up 57.5 to 64.5 per cent of the share between FY2022 and H1 FY2025. Infinity Development noted this was aligned with industry reports indicating Vietnam as the top footwear export country, followed by Indonesia and China.

As at Mar 31, 2025, the group’s earnings per share stood at HK$0.201, based on a pre-placement share capital of 281.7 million shares. This was up from HK$0.146 per share in the prior year. 

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. 

In Asia, the footwear adhesives market is projected to increase at a compound annual growth rate of 4.5 to 5.5 per cent in the next five years, reaching US$1.2 billion to US$1.8 billion by 2029, the company said. 

But it noted its exposure to geopolitical risks such as tariffs imposed by countries such as the United States. Other risks include a potential increase in costs and operating expenses amid inflationary pressures, a highly competitive market, and its reliance on a handful of major customers, which accounted for over 30 per cent of revenue from FY2022 to H1 FY2025.