SINGAPORE: Israeli firm The Trendlines Group launched an initial public offering (IPO) on the Singapore Exchange’s Catalist board on Monday (Nov 16).
The medical and agricultural tech incubator firm said it will offer 75.76 million shares, priced at S$0.33 for each share. The IPO is expected to raise S$25 million gross proceeds, and is priced at approximately 1.4 times the price-to-book ratio of Trendlines’ net tangible assets value as of Jun 30.
Trendlines commenced operations in 2007 and has since established and incubated 60 portfolio companies. It said 17 of these companies are at the “commercialisation” stage and are generating revenue. Five portfolio companies have also been acquired by or sold their assets to multinational corporations.
Currently, it operates through its two subsidiaries Trendline Medical and Trendline Agtech, and its own internal innovation centre, Trendline Labs.
Trendlines’ chairman and CEO Steve Rhodes said the decision to list in Singapore was because it is fitting for the company’s size, as compared to other stock exchanges such as NASDAQ or the Tel Aviv Stock Exchange.
He said: “We’ve found tremendous opportunity in Singapore for establishing incubators, and using Singapore really, as a hub for our Asian expansion.” He added that other factors such as the rule of law, the use of English and location makes Singapore a comfortable place to do business.
Trendlines said it will use to proceeds raised to expand Trendline Labs and invest in current and new portfolio companies. In addition, it expects to use S$5 million of the capital to establish new incubators, including one in Singapore by 2016. It is also looking to use Singapore as a centre for expansion.
The first day of trading is scheduled for Nov 26. The Israeli group said it has entered into an agreement with B. BRAUN Melsungen AG – a healthcare supplier – to purchase S$7.1 million worth of Trendlines’ shares.