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01-04-2012, 01:12 AM
Business Times - 31 Mar 2012
Swee Hong plans to raise some $20m in share sale
By JAMIE LEE
CIVIL engineering firm Swee Hong Engineering plans to raise about $20 million in an initial public offering (IPO), BT understands. A source close to the deal, who declined to be named, expects the new shares to be priced under 30 cents. According to Swee Hong's IPO prospectus lodged yesterday, the company plans to use the proceeds to buy construction equipment and machinery, fund acquisitions and joint-venture deals, and for working capital. No breakdown was provided.
The company is in a net cash position. At the end of fiscal 2011 ended June 30, it held cash of $6.7 million. Swee Hong's biggest current project is its work on the 'Gardens by the Bay', its prospectus showed, with two contracts from the project totalling $127 million. The works on this tourist attraction are expected to be completed by the first half of this year. Another major contract is its $3.6 million engineering work on Stamford Canal, which should be completed by March 2013.
Work from the public sector in Singapore contributes to nearly all of its revenue, the firm said. All of its projects in the last few years are also based here. Net profit for fiscal 2011 stood at $12.3 million, down 22 per cent from $15.7 million a year ago, due mainly to lower gross profit margins from projects and higher administrative expenses.
Its gross profit margin fell to 25.4 per cent in fiscal 2011 from 28.4 per cent the previous year. Administrative expenses soared 84 per cent to $7 million in fiscal 2011, due to mainly to higher staff costs. Staff salaries alone, including the foreign worker's levy, rose by $1.8 million.
DMG & Partners Securities Pte Ltd and China Construction Bank Corporation, Singapore Branch, are the joint issue managers and joint underwriters.
Swee Hong plans to raise some $20m in share sale
By JAMIE LEE
CIVIL engineering firm Swee Hong Engineering plans to raise about $20 million in an initial public offering (IPO), BT understands. A source close to the deal, who declined to be named, expects the new shares to be priced under 30 cents. According to Swee Hong's IPO prospectus lodged yesterday, the company plans to use the proceeds to buy construction equipment and machinery, fund acquisitions and joint-venture deals, and for working capital. No breakdown was provided.
The company is in a net cash position. At the end of fiscal 2011 ended June 30, it held cash of $6.7 million. Swee Hong's biggest current project is its work on the 'Gardens by the Bay', its prospectus showed, with two contracts from the project totalling $127 million. The works on this tourist attraction are expected to be completed by the first half of this year. Another major contract is its $3.6 million engineering work on Stamford Canal, which should be completed by March 2013.
Work from the public sector in Singapore contributes to nearly all of its revenue, the firm said. All of its projects in the last few years are also based here. Net profit for fiscal 2011 stood at $12.3 million, down 22 per cent from $15.7 million a year ago, due mainly to lower gross profit margins from projects and higher administrative expenses.
Its gross profit margin fell to 25.4 per cent in fiscal 2011 from 28.4 per cent the previous year. Administrative expenses soared 84 per cent to $7 million in fiscal 2011, due to mainly to higher staff costs. Staff salaries alone, including the foreign worker's levy, rose by $1.8 million.
DMG & Partners Securities Pte Ltd and China Construction Bank Corporation, Singapore Branch, are the joint issue managers and joint underwriters.
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