Infinity Development sees muted Catalist debut; up 1.28% from all-placement offer price

[SINGAPORE] Shares of adhesive manufacturer Infinity Development were up 1.28 per cent on Wednesday (Dec 3) – as the company debuted on the Catalist board of the Singapore Exchange.

The counter was at S$1.395, compared to its all-placement offer of 35.1 million placement shares at S$0.39 apiece.

Infinity Development had announced on Nov 21 that it was looking to raise net proceeds of S$11.1 million in an initial public offering via the issue of all-placement shares.

Gross proceeds from the placement would be S$13.7 million, including estimated expenses related to the placement.

The majority of the net proceeds valued at S$6.2 million will help expansion in overseas markets, reported The Business Times previously. The remaining amount of S$2.4 million, will assist with expansion via acquisitions, joint ventures or strategic alliances, and a further S$2.4 million will act as general working capital.

Xander Capital is the sponsor and issue manager, and KGI Securities is the placement agent for the IPO.

The goal of the company is to become a leading footwear adhesive supplier in Asia. It has 400 employees and operates in 10 locations as at late-November.

Infinity Development believes there is strong growth in the footwear manufacturing industry, on the back of strong demand for athletic and casual shoes as well as a rebound in global trade, among other factors.

The footwear adhesives market in Asia is projected to rise at a compound annual growth rate of 4.5 to 5.5 per cent in the next five years, hitting US$1.2 billion to US$1.8 billion by 2029, the company said.

Additional reporting by Navene Elangovan and Ry-anne Lim