Swee Hong IPO

Swee Hong IPO: Plans to raise $13.7m in net proceeds from its proposed listing on SGX. The contractor with micro-tunnelling capabilities launched its IPO of 97.8m shares, which comprises 68.5m new shares and 29.3m vendor shares, at 22.5c each on Tue. Swee Hong is offering 2.8m shares to the public, while the remaining units will be sold by way of placement. From the net proceeds, $10m will be used to acquire equipment to increase its machinery capacity and tunnelling offerings. Another $3m will be used to expand into other construction businesses, and the balance for working capital purposes. The company recorded revenue of $84.4m and net profit of $12.3mn in 2011. The public offer will close on May 21 and the shares are expected to make its trading debut on May 23. DMG & and CCB are the joint issue managers and joint underwriters of the IPO.