The initial public offering (IPO) of TraceTogether token maker iWOW Technology met with solid demand, with the offering of 26 million new shares coming in around 3.0 times subscribed, the company said in a filing to SGX Wednesday.
The offering was priced at S$0.25 a share, the filing said, with the company set to raise gross proceeds of around S$6.5 million. The new public shareholders will hold 10.4 percent of the company.
The shares are set to begin trading at market open on Thursday.
The company provides integrated wireless Internet of Things (IoT) services in Singapore, as well as offering smart city services.
For the 12 months ended 31 March 2021, iWOW posted revenue of S$26.4 million, up from S$4.4 million in the year-earlier period, mainly on sales of TraceTogether tokens in the smart city segment. The TraceTogether tokens were used in Singapore to track individuals’ close contacts for containing outbreaks of the Covid-19 virus.
The company reported net profit of S$3.72 million in the year ended 31 March 2021, up from S$22,000 in the year-earlier period.
“We are thrilled to have the immense support from investors. The positive feedback is an encouraging sign of investors’ firm belief in our current IoT offerings and future vision,” Bo Jiang Chek Raymond, CEO and executive director of iWOW, said in the statement.
“Listing on Catalist is a pivotal phase in our long-term development strategy. The move reaffirms our strong commitment to scaling operations and serving customers beyond Singapore,” Bo said.
In its highlights sheet, iWOW said there was “significant room” to increase market share in existing markets by increasing sales of IoT services to existing customers and growing the customer base. The company also said it planned to expand to overseas markets, including Japan, Thailand, Malaysia, Indonesia and the U.A.E.
After the placement, controlling shareholders Kau Wee Lee and her spouse Soo Kee Wee will hold around 46.8 percent and 1.9 percent of iWOW, respectively, according to the highlights sheet filed to SGX. Soo Kee Wee is the chairman and non-executive director of the company.