AEDGE Group - a provider of engineering, transport, and security and manpower services - said on Friday evening that all 16 million placement shares in its initial public offering (IPO) were validly subscribed for.
The IPO is in conjunction with the company's proposed listing on the Catalist board of the Singapore Exchange (SGX).
With the shares priced at S$0.20 apiece, the application monies received for these placement shares amount to a total of S$3.2 million as at the close of the placement at noon on Dec 10, said the firm.
Aedge had previously said it was looking to raise net proceeds of some S$1.7 million through the IPO, with this placement representing some 15.1 per cent of the enlarged share capital of 106 million shares of the group.
Based on the given price, Aedge's market capitalisation will be pushed up to S$21.2 million after the placement. This translates to a price-to-earnings ratio of 59 times.
Commenting on the results of the placement, Aedge's chief executive officer and founder Poh Soon Keng said: "Although the events in 2020 have made it very challenging for many businesses, we believe in our group's prospects because of our diverse capabilities that cater to a myriad of industries and customers.
"With the proceeds raised, we look forward to embarking on the next phase of our growth strategy, which will see us strengthen the depth and breadth of services offered by each of our three business segments."
Aedge's three business segments see it providing a "broad range of services and solutions" to customers in government agencies, multinational companies, government-linked companies and even schools. The group's security and manpower services segment is its biggest revenue contributor.
Aedge said it plans to utilise the proceeds raised from its IPO to strengthen its core capabilities and further its business strategies and future plans through means such as the acquisition of property, plant and equipment.
Other uses for its proceeds include upgrading its bus management systems to better manage and track demand levels in order to ensure that its fleet of 88 buses is "efficiently deployed".
In order to "remain competitive and keep abreast of rapidly changing technologies in security systems", Aedge said it also intends to develop and test new security solutions in line with market needs, hire new staff and upgrade its human resource software to support its expanding operations.
UOB Kay Hian is the sponsor, issue manager and placement agent for the listing, and will continue to be the sponsor of the company for three years from the date it is admitted and listed on Catalist.
The listing and trading of Aedge's shares is expected to commence on a "ready" basis at market open on Dec 14, subject to the bourse being satisfied that all conditions necessary for the commencement of trading have been satisfied.