A local firm that supplies furnishing and other finishes for condominiums and hotels launched an initial public offering (IPO) yesterday aimed at raising gross proceeds of $6.9 million.
The business, known in industry terms as "interior fit-out", involves customising, manufacturing and installing products like vanity cabinets and doors.
Serrano, which is seeking to list on the Catalist board, has priced the stock at 23 cents apiece.
It aims to raise net proceeds of about $3.6 million through the sale of 22.5 million shares, according to the offer document yesterday.
There are 28.5 million placement shares, with 1.5 million shares available to the public. It will have a market capitalisation of about $34.5 million based on the share capital of about 150 million shares immediately after the IPO at the 23 cents listing level.
About $1 million of the net proceeds will fund overseas expansion, $1 million has been earmarked for investment and $1.6 million for working capital.
Serrano has completed more than 80 interior fit-out projects across residential, hospitality, retail and commercial sectors, with a focus on mid-to-high-end private residential developments.
One contract involved providing timber doors, wardrobes and ironmongery for 1,040 units in The Interlace condominium in Alexandra, a project worth about $10 million.
The company, which has 311 employees, is looking to expand aggressively in the region.
It has been in Vietnam since 1998 and in Thailand since 2003.
Chief executive Winston Chia, 47, said: "We already have a presence in South-east Asia and are not newbies. We know the culture and business environment.
"We strongly believe Serrano is in a good state... and in 2015, the target for South-east Asia is to become an integrated market, and Serrano is more than ready to tap into this market."
The public offer opened yesterday and closes at noon on Oct 23.
Trading is expected to start on Oct 28.
This article was first published on Oct 16, 2014.
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