Film effects and virtual reality content maker Vividthree saw its shares close at S$0.23 each on their trading debut on Tuesday, below the placement offer price of S$0.25.
The shares traded in a S$0.225 to S$0.25 range on Tuesday on the Catalist board. Around 3.54 million Vividthree shares changed hands, valued at S$836,600.
Vividthree’s placement of 51.8 million new shares at S$0.25 each was fully subscribed, raising gross proceeds of S$12.95 million, with net proceeds of S$11.18 million expected.
Despite the share’s decline, Vividthree was positive on the outcome, calling it a “successful” debut.
“With access to the capital markets, we look forward to creating VR content with our highly driven team for further growth,” Charles Yeo, managing director of Vividthree, said in a statement filed to SGX after the market close on Tuesday.
The net proceeds are earmarked for general working capital purposes, including production of virtual reality (VR) content and immersive media and to expand the business through development or the acquisition of intellectual property assets and joint ventures, the filing to SGX said.
“With the rising penetration of Augmented Reality (AR) and VR immersive content, producers like Vividthree will continue to benefit,” Yeo said. He noted the company recently gained access to the rights to develop a VR thematic tour show for the popular film, Train to Busan.
“In our opinion, the VR tour may be a potential game changer for the group, transforming its business model into one which is highly scalable,” Yeo added.
The company, known within Singapore for producing the effects for the three “Ah Boys to Men” movies, said that revenue for the financial year ended 31 March 2018 was S$7.06 million, while its gross profit was S$4.60 million. That was up from fiscal 2017’s revenue of S$5.29 million and gross profit of S$3.12 million, it said.
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, while pre-IPO investor R3 Asian Gems will hold 9.41 million shares, or a 2.82 percent stake, according to the press release from Vividthree.
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.