The counter begins trading at S$0.55, up from its initial public offering price of S$0.51
[SINGAPORE] Shares of electrical infrastructure solutions and service provider EGP Energy Corporation rose on Wednesday (Jul 29) morning on its trading debut on the Singapore Exchange (SGX).
The counter began trading at S$0.55, up 7.8 per cent from its initial public offering price of S$0.51.
EGP Energy is the fourth company to list on the SGX mainboard this year, following the listings of Foundation Healthcare, JustCo and UI Boustead Reit. It now has an issued share capital of nearly 225.5 million shares, with a market capitalisation of about S$115 million based on the offering price.
Frankie Fan, executive chairman and CEO of EGP Energy, on Tuesday said that the strong investor interest reflects the opportunities that the company sees ahead.
The IPO comprised 18.8 million offering shares priced at S$0.51 each. Of these, 17.8 million shares were offered through an international placement to institutional and other investors in Singapore, as well as selected institutional and other investors outside the US. The remaining one million shares were offered to the public in Singapore.
The Singapore shares offered were 17.6 times subscribed by the close of the public offer at noon on Monday, with 651 valid applications for the offer shares.
These applicants applied for an aggregate of 17.6 million shares, with application monies received amounting to about S$9 million, said EGP Energy.
The company expected to raise total gross proceeds of about S$30.6 million and net proceeds of about S$27.4 million through the IPO and cornerstone subscription agreements. The cornerstone agreements were expected to raise about S$21 million in gross proceeds across about 41.2 million new shares.
The company said it intends to use the proceeds primarily to expand its product offerings and customer base, strengthen its maintenance services capabilities, invest in digitalisation and intelligent technologies, and support its expansion into Malaysia and Indonesia.
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While EGP Energy said it does not have a formal dividend policy, it previously said it intends to recommend and distribute dividends of up to 40 per cent of its net profit after tax for 2026 and 2027.
