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Alpina Holdings offers 37 mil shares at 31 cents each in IPO

·3-min read

Alpina Holdings lists on Catalist Board; offers 37 mil shares at 31 cents each.

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 group is led by an experienced and dedicated management team, helmed by its founders, Executive chairman and CEO, Low Siong Yong, and executive director, Tai Yoon On, each having over 25 years of experience in providing IBS, M&E engineering services and A&A works.

In relation to the IPO, the group is offering 37 million shares, comprising of 32 million new ordinary shares and 5 million existing ordinary shares held by two existing shareholders at 31 cents per share. The issuance of the new shares are expected to raise about $8.1 million for the company.

From the funds raised through the IPO, the group intends to expand the scale of 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.

Looking at the group’s FY2020 ended December 2020 results, earnings were higher at $5.0 million from $2.7 million a year ago. But revenue dipped to $37.9 million in FY2020 from $43.1 million a year ago. This was mainly due to the circuit breaker period in 2020, which caused to group to have to halt operations for several months. But the group managed to clock in earnings growth thanks to support grant from the government and cost control measures.

Revenue however, has shown an uptick in 1HFY2021 as the local economy recovers, with revenue coming in 76.6% higher y-o-y at $25.3 million.

The group’s orderbook stands at about $151.0 million as at Dec 20, 2021, of which 35.2% is expected to be recognised in FY2022 and 62.2% to be recognised after FY2022.

Although the group 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 Limited is the sponsor and issue manager and placement agent and UOB Kay Hian Private Limited is the sub-placement agent for the placement.

“Over the last 17 years, we have built up a reputation as a quality and reliable contractor in Singapore. With the growing demand for IFM and IBS services, the group is well-positioned to harness opportunities from such industry trends. 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

“The industry outlook in the near future looks promising in view of the developing market trends in the IFM and IBS industries. 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,” he adds.

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