Alpina Holdings, a local-based contractor specialising in providing integrated building services (IBS), mechanical and electrical (M&E) engineering services, and alteration and addition (A&A) works to public and private sector projects, has today launched its initial public offering (IPO) on the Catalist Board of the Singapore Exchange (SGX).
The company is led by founders, executive chairman and CEO, Low Siong Yong, and executive director, Tai Yoon On. They both have over 25 years of experience in providing IBS, M&E engineering services and A&A works.
The company is offering 37 million shares at 31 cents each to raise some $8.1 million for the company.
The offer comprises of 32 million new shares as well as 5 million vendor shares.
Alpina plans to use the proceeds from the IPO to expand its existing business, strengthen and accelerate the extension of its integrated facilities management (IFM) services segment, general working capital and potential mergers and acquisitions.
The placement shares of 37 million shares represent about 20.1% of the post-placement share capital of the company. Based on the placement price, Alpina’s market capitalisation upon listing stands at $57.1 million.
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For its FY2020 ended Dec 2020, Alpina's revenue dipped to $37.9 million in FY2020 from $43.1 million a year ago, as construction activities were disrupted amid the pandemic.
Yet, FY2020 earnings hit $5.0 million, versus $2.7 million in the preceding year, thanks largely government wage subsidies and cost controls.
For 1HFY2021, revenue has recovered, up 76.6% higher y-o-y to $25.3 million.
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As at Dec 2021, Alpina's orderbook was $151.0 million, with 35.2% to be recognised in the current FY2022 and the 62.2% thereafter.
Although the company does not have a formal dividend policy, it intends to distribute 50% of its earnings to shareholders in dividends for FY2022 and FY2023.
The placement will close at 12.00pm on Jan 26 and shares in Alpina is expected to trade on a “ready” basis at 9.00am on Jan 28.
United Overseas Bank is the sponsor and issue manager and placement agent and UOB Kay Hian is the sub-placement agent for the placement.
Low says that with 17 years of track record, the company has built up a reputation as a quality and reliable contractor in Singapore. With the growing demand for IFM and IBS services, Alpina is well-positioned to capture more of such businesses.
"The IPO and listing provides an excellent platform for the group to enhance its corporate profile and better position itself to capitalise on such opportunities,” says Low.
He says the industry outlook in the near future looks promising. He notes that BCA’s Real Estate Industry Transformation Map is expected to stimulate the demand for IFM and IBS services, particularly for public sector projects.
"The rising trend of IBS contracts evolving into IFM works, which also cover building and M&E maintenance, is expected to create new opportunities for IBS and IFM contractors,” adds Low.
