Vividthree set to begin trade on Catalist after placement shares fully subscribed

Singapore two-dollar bills

Vividthree shares were set to begin trading on Catalist at the market open on Tuesday after its placement of 51.8 million shares at S$0.25 each was fully subscribed, raising S$12.95 million.

The digital effects company’s market capitalization based on the placement price and post-placement share capital of 334.01 million shares is estimated at S$83.50 million, according to the prospectus.

Around S$7.83 million of the proceeds were earmarked for general working capital purposes, including the production of VR content and immersive media, while S$3.35 million was expected to be used for the development or acquisition of intellectual property, or for acquisitions, joint ventures or strategic alliances, the prospectus said.

The company, known for producing the effects for the three “Ah Boys to Men” movies, said that its fiscal 2017 revenue was S$5.29 million, while its net profit for fiscal 2017 was at S$1.32 million.

Vividthree is being spun off from substantial shareholder mm2 Asia, which will hold 138.72 million shares, or around 41.53 percent of total of the post-placement shares.

Charles Yeo holds 43.98 million shares, or 13.17 percent, of the total, while Jay Hong holds 43.98 million shares, or around 13.17 percent, it said.

All three have said they won’t sell, transfer or pledge their shares for six months, according to the prospectus.

Lee Chun Fun holds 35.15 million shares, or around 10.52 percent, and has pledged not to sell or transfer the shares for 12 months, it said.

Vividthree is a creative studio which makes content for multiple platforms and provides production service for the film-making process, through pre- and post-production.

Its VTX division specializes in creating immersive content for virtual reality and 360 degrees film for platforms including Samsung gear VR, Oculus rift, HTC vive and iOS and Android, according to its website.

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