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Sat, Oct 17, 2020 – 5:50 am
Singapore
NANYANG Technological University (NTU) spin-off company Nanofilm Technologies is heading to main board listing on the Singapore Stock Exchange with Temasek Holdings as a substantial shareholder.
A Reuters report cited three sources with knowledge of the matter that the initial public offering (IPO) could raise as much as S $ 510 million, making it one of the largest lists of non-Reit motherboards in recent years here. This would also be the first motherboard list since March.
On Friday, Nanofilm presented its preliminary prospectus. The company, which specializes in advanced materials and nanoproducts, was founded in 1999 by CEO Shi Xu when he was an associate professor at NTU’s School of Electrical and Electronic Engineering.
Several parties have committed to joining as key investors, including Temasek’s wholly owned indirect subsidiary Venezio Investments, Nikko Asset Management Asia and JPMorgan Asset Management (Singapore), among others.
Each of them has entered into separate fundamental agreements with the company or with Dr. Shi to subscribe or purchase a total of about 104 million fundamental shares at the offer price.
Approximately 77.2 million of these shares will be new shares issued by the company, while Dr. Shi will sell the remaining 27 million shares.
Temasek will also become a major shareholder in the company upon completion of the offering and sale of the core shares.
This occurs when Temasek’s associates Vanda 1 Investments and Orchid 2 Investments, which are controlled by Heliconia, hold convertible notes in the company. The notes will be converted into shares prior to listing.
The net proceeds from the issuance of new fundamental shares will be used for the development and construction of new machinery, as well as for research and development and engineering in order to enter new end industries and seek new areas in existing markets.
The proceeds will also be used for the construction, remodeling and renovation of new and existing production facilities; and general corporate and working capital purposes.
Nanofilm’s core business units are advanced materials, nanofabrication and industrial equipment with operations in Singapore, China, Japan and Vietnam.
The company now offers unique solutions to some 300 customers from various industries, including cell phones, cars and cameras. Some key clients include Fuji Xerox, Nikon, Canon, Microsoft, and Huawei.
During the first half of 2020, Nanofilm’s net profit stood at S $ 18.5 million, up 62.3 percent from S $ 11.4 million a year ago. Revenue for the semester was up 40.9 percent to S $ 77.8 million.
For the fiscal year 2019 ending December 31, net income increased 22.2 percent to S $ 35.8 million from S $ 29.3 million in 2018. Revenue also increased 16.4 percent to Singapore $ 142.9 million.
Currently, the company does not have a dividend policy and intends to use and / or reinvest the earnings generated in the financial year ending December 31.
Other than the interim dividend of 1.9 Singapore cents per share paid on July 2, it does not intend to pay any further dividends for fiscal 2020.
However, the board intends to recommend and distribute dividends of at least 20 percent of after-tax net income (excluding exceptional items) generated in fiscal 2021 to reward shareholders for participating in the growth of the group. .
The last motherboard to trade in Singapore this year was the United Hampshire US Reit IPO in March, which raised $ 394 million.
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