Terratech

Terratech: Marble producer Terratech Group had a stellar trading debut, opening at $0.27, 17% above its offer price of $0.23. The offer of 108.7m placement shares were fully snapped up, with notable investors include Tan Ong Huat (12m)- non-executive director of See Hup Seng and Ng Han Kok (10m)- founder and CEO of Hetat Group. Terratech is in the business of exploration, development, quarrying, extraction and processing of marble from the Kelantan Marble Quarry in Malaysia, and the commercial sale of marble and marble products. The net proceeds of $7m from the IPO will be used for the expansion of production capacity and processing facilities and working capital. Terratech will have a free float of 17.7%, with its controlling shareholders holding ~67.7% of outstanding shares. At the current price of $0.27, Terratech trades at 8x P/B with a total market capitalization of $166.1m. While there are no direct peers listed on SGX, UK-listed peer Fox Marble Holdings trades at 4.5x P/B.