HG Metal's "Men Of Steel" Advances Up The Steel Value Chain With Its IPO 311 Times Subscribed
BackMar 20, 2002
SINGAPORE, 20 March 2002 - HG Metal Manufacturing Limited ("HG Metal" or the "Company"), Singapore's only steel stockist with manufacturing capability, announced today that its initial public offering ("IPO") received an overwhelming response. A total of 3,486 applications were received for its 500,000 Offer Shares available to the public for subscription. In total, these subscribers applied for 157,249,000 Offer Shares, with application moneys received amounting to approximately $31.5 million.
Based on the enlarged number of 505,000 Shares available for subscription by the public (comprising 500,000 Offer Shares and 5,000 Placement Shares in respect of rejected applications), the Offer to the public is approximately 311.38 times subscribed.
Based on the total invitation size of 17,000,000 Shares ("Invitation"), the Invitation is approximately 10.22 times subscribed.
HG Metal had offered a total of 17 million new ordinary shares at $0.20 each, representing approximately 22% of HG Metal's enlarged share capital of 77,330,000 shares, as follows:-
- 0.5 million Offer Shares
- 14.8 million Placement Shares
- 1.7 million Reserved Shares
The net IPO proceeds of approximately $2.4 million will be used for the following:
(i) $2.0 million for investment in a manufacturing line for steel pipes; and
(ii) $0.4 million for use as additional working capital.
HG Metal's shares will be traded on SGX-SESDAQ, and will begin tomorrow, 21 March 2002 at 9.00 am.
SBI E2-Capital Pte Ltd is the manager of the IPO while SBI E2-Capital Securities Limited and Kim Eng Ong Asia Securities Pte Ltd are the joint lead placement agents. The underwriters for the public offer are UOB Kay Hian Private Limited and Kim Eng Ong Asia Securities Pte Ltd.
Mr. Tan Chan Too, Chairman of HG Metal said, "We are very grateful for the support given to us and we wish to thank all our investors, business associates, customers, suppliers and our team of dedicated staff for their kind support and contribution towards the success of our IPO."
Mr Wee Piew, Chief Executive Officer, added, "This IPO is an important milestone for our long-term strategic business plan. The IPO proceeds will be used to fund a new manufacturing line for the production of steel pipes, which will further enhance our manufacturing capability. By expanding our manufacturing capabilities and gaining SGX listing status, we will advance further up the steel value chain."
Mr Lee Leng Loke, Executive Director, continued, "We are glad that investors recognize the prospects of our business and our growth potential. We will continue to work hard to bring HG Metal into the next phase of growth and increase shareholders' value with our enhanced manufacturing capability."
About HG Metal
HG Metal is a premiere steel stockist and manufacturer of steel products. With more than 30 years in the steel business, HG Metal offers more than 2,000 different types of steel products of various dimensions for a wide variety of industrial and engineering applications. With their "one-stop supermarket" strategy, HG Metal is able to satisfy the needs of their customers with one visit to their extensive stockyard and manufacturing facility.
HG Metal has also differentiated itself from its peers in its strategic move to custom manufacture steel products. HG Metal currently manufactures customized flat steel bars used in a wide variety of engineering processes and mild steel lip channels commonly used as roofing support in commercial and industrial buildings. The Directors believe that HG Metal is the only steel stockist in Singapore with such manufacturing capability. This give HG Metal a distinct competitive advantage against their competitors, as they can fulfill their customers' requirements more quickly and completely, especially for specifications that are not readily available in the market. HG Metal intends to expand its product mix to include the manufacturing of steel pipes next year. With its listed status and enlarged custom manufacturing capabilities, HG Metal will advance further up the steel value chain.