Sevak plans to transfer its listing from the Mainboard to the Catalist, as it sketches out a new focus on “futuristic businesses” with higher growth potential, including infrastructure for charging electric vehicles, digital platforms and fintech applications.
The company, which used to be known as S i2i, is now in a range of business including the distribution of telecom operator products in Indonesia and also providing IT services. It has an existing battery management service for electric vehicles business too, run under an entity called Singapore Electric Vehicles (picture), although not as significant currently.
Older punters might find the company’s original name MediaRing familiar – positioned as an internet-based voice communications provider, it was listed at the height of the dotcom in late 1999 and ended its debut trading day almost tripled its opening price.
According to the company, it needs greater flexibility in executing corporate actions, as the technology business is fast-moving. Such corporate actions might include acquisitions, divestments and, or mergers may also involve the issuance of shares to potential strategic partners or investors.
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According to Sevak, with its current market capitalisation of around $16 million, it is difficult for it raise funds by issuing shares or using shares to pay for acquisitions, as the thresholds for share issuances and acquisitions and or disposals on the Mainboard is lower as compared to the Catalist.
Sevak has appointed RHT Capital as its proposed continuing sponsor. The company intends to submit an application to the Singapore Exchange.
For 1HFY20 ended June 30, the company reported revenue of $138 million, up 5%. It was $1.4 million in the red, from earnings of $709,000 in the year earlier period.
Sevak shares last traded at $1.22, down 55% year to date.
