The $12m initial public offering (IPO) saw shares of JE Cleantech open at $14.20. The stock ended its first session at $19, up 375%.
Who is JE Cleantech?
JE Cleantech Holdings Ltd (NASDAQ: JCSE) sells cleaning systems and other equipment. The Singaporean company offers centralized dishwashing services in Singapore and sells cleaning systems for various industrial end-use applications to customers, mainly in Singapore and Malaysia.
When Will JE Cleantech IPO?
The JE Cleantech IPO took place on the NASDAQ stock exchange on April 22, 2022.
The company issued 3,000,000 ordinary shares at a $4 per share public offering price. This amounts to total gross proceeds of $12m before deducting expenses.
Additionally, in connection with the IPO, a shareholder is selling 750,000 ordinary shares at $4 per share, for total gross proceeds of $3m before expenses.
The offering is expected to close on or about April 26, 2022, subject to customary closing conditions.
Additionally, the Company has granted the underwriters a 45-day option to purchase up to an additional 562,500 ordinary shares at the public offering price, less underwriting discount and commissions.
IPO is the term used when a private company goes public in order to be listed on a stock exchange. Find out more in our handy IPO guide.
How did the JE Cleantech IPO perform?
The JE Cleantech IPO did well. It surprised to the upside, with a 375% jump in share price to close its first-day trading at $19 a share.
Who is the Underwriter?
ViewTrade Securities Inc., a global provider of brokerage, investment banking, corporate, advisory and trading platform services, is acting as the Lead Managing Underwriter and Sole Book-Running Manager for the offering.
ViewTrade Securities is a US-registered broker-dealer providing brokerage, trading, investment banking and advisory services for US retail investors and B2B to major financial institutions worldwide.
ViewTrade Securities' Investment Banking Division offers capital raising and advisory services to growth-oriented companies both domestically and in emerging markets.
Use of Proceeds
The company plans to use between $3.1m and $3.8m to expand its product portfolio. This includes manufacturing an autonomous robot floor scrubber for industrial and commercial use. The company plans to leverage its knowledge from its previous design and development of an autonomous train interior cleaning robot.
Between $2m and $2.4m will be spent on upgrading its production capability by purchasing more advanced machinery and equipment.
Approximately $0.7m will be spent on improving the production efficiency of its centralized dishwashing services business. To do this, it will purchase new machinery and equipment to enhance the capabilities and productivity of its Hygieia Facility.
JE Cleantech plans to spend around $0.9m on building its brand. This includes a showroom at its JCS Facility and, attending trade shows, exhibitions, industry forums, and revamping its corporate website.
Around $1m will be allocated to repaying interest-free loans.
Approximately $0.4 million will be used to recruit the company’s business development team and increase marketing efforts.
$0.3 million will be used to set up a new office in Malaysia
Finally, general working capital will amount to between $1.6m and $2m.
