Deluge IPO draws subscriptions of 3.86 times ahead of SGX listing

Deluge Corporation attracted subscriptions equivalent to 3.86 times its initial public offering, the fire-protection specialist said on Oct 15. Trading on the Singapore Exchange mainboard is scheduled to start at 9 am on Oct 16, using stock code 9DC.

Priced at S$0.60 each, the IPO's 15.6 million shares were split between a placement of 14.8 million shares and a public tranche of 800,000 shares. Public subscriptions reached 11.97 times the allocation, with 327 valid applications seeking 9.53 million shares and about S$5.74 million in application monies.

The placement drew interest in 50.63 million shares worth about S$30.4 million, representing subscriptions of 3.42 times. Deluge named Lion Global Investors and UOB Asset Management among the investors.

A separate cornerstone tranche comprised 23.4 million new shares subscribed at the offer price for about S$14.0 million. Participants included Amova Asset Management Asia, Avanda Investment Management, HB Equity Partners, Whitefield Capital Management and individual investors.

Together, the offering and cornerstone tranche generate gross proceeds of about S$23.4 million. Deluge expects to retain about S$20.1 million after S$3.27 million in listing expenses.

Planned uses include investment in infrastructure, facilities and operational capabilities, partnerships involving installations and lifecycle services, and improvements to its integrated fire-detection platform. Executive director and group chief executive Lee Wai Wah said partnerships and acquisitions would also target complementary capabilities, while selective regional expansion would initially focus on Malaysia.

As at Sep 16, Deluge's order book stood at about S$433.0 million. The offer price implies a listing market capitalisation of about S$87 million, based on 145 million shares after the offering.