Singaporean lube supplier United Global raised SG $10.7 million (U.S. $7.9 million) in its initial public stock offering conducted last week – funds earmarked for expansion and entry into new markets.
The company, parent of United Oil Co., sold 42.8 million shares during its July 5 offering on Catalist, a secondary board of the Singapore Stock Exchange, according to documents that the company filed. The closing price was SG $0.275 per share, higher than the target price of SG $0.25 that the company had set going into the offering.
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Officials had said the company would use IPO proceeds for acquisitions and strategic alliances, along with working capital, and that at least some of the investments would contribute to its strategy of entering new markets. Specifically, they mentioned Bangladesh and Myanmar.
United Oil operates a blending plant in Singapore with capacity to make 44,000 metric tons per year of lubricants. United Global also trades base oils, lubricant additives and lubricants in more than 30 countries. In 2015, nearly 90 percent of its sales were made outside of Singapore.