Placement shares of 14 million priced at S$0.26 per share fully subscribed
Trading debuts on the Catalist Board of the SGX-ST at 9.00 am on Wednesday, 1 December 2022
Media OutReach – 30 November 2022 – Laboratory testing and certification services provider
LMS Compliance Ltd, (“LMS Compliance” or the “Company” and together with its subsidiaries consisting of the MY CO2 group of companies, Empiric Science Sdn. Bhd. and LMS Compliance International Pte. Ltd., the “Group”) has attracted positive interest from investors for its initial public offering (“IPO”) by way of a placement (the “Placement”) of 14 million shares (the “Placement Shares”) at S$0.26 per share. LMS Compliance registered its offer document on 22 November 2022, and the listing and trading of its shares on the Catalist Board of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) is expected to commence on a “ready” basis at 9.00 am on 1 December 2022.
As at the close of the Placement at 12.00 noon on 29 November 2022, all 14 million Placement Shares have been validly subscribed for and application monies received for these Placement Shares amount to S$3.64 million.
Dr. Ooi Shu Geok, LMS Compliance’s Executive Director and Chief Executive Officer, annotated:
“We are thrilled to launch our IPO, which marks a new growth chapter for the Group in the laboratory and testing certifications industry. We will leverage on our established track record of 15 years and our experience that spans a gamut of industries and sectors to create and enhance value for all stakeholders, building on our proven capabilities and technological know-how to drive robust growth in the future.”
Mr Nickle Luo, Founder and Chief Executive Officer of RID Testing & Certification and VEO Standards, is one of the anchor investors that took part in the Placement. Mr Luo has a Master Degree in Management and is highly experienced in the fields of investment, strategy and mergers and acquisitions.
Usage of Proceeds
The Placement will raise gross proceeds of approximately S$3.64 million and net proceeds of approximately S$2.04 million. The allocation of the intended use of proceeds is set out below:
S$0.30 million to expand its certification services segment and conformity assessment technology distribution segment
S$1.20 million for acquisitions, joint ventures and strategic alliances to grow its business
S$0.54 million for general working capital
LMS Compliance plans to increase the range of its accredited and non-accredited tests in existing industry sectors, and expand into new sectors, such as oil and gas, by investing in new laboratory equipment, cleanrooms and instruments, as well as hiring new chemists and marketing staff. It may also set up new laboratories in other states of Malaysia where it does not have a footprint to capture demand from these locations, subject to an assessment of the commercial viability of such investments. LMS Compliance also intends to expand through acquisitions, investments, joint ventures and strategic alliances and may also consider strategic partnerships or alliances with parties which are synergistic with its existing businesses, in countries such as Malaysia, Indonesia and China.
In addition, the Group will expand its certification services to new industry sectors, such as agriculture, basic metals, machinery and equipment, recycling, as well as hotels and restaurants.
Also, the Group has plans to enhance the features and capabilities of the Group’s digital laboratory solutions, namely “aizenz-Document Management System”, “aikinz-Laboratory Information Management System” and “aisinz-Global Real-time Surveillance”, by adding artificial intelligence, data analytics, data mining or benchmarking capabilities to analyse customer behaviour patterns to assist in decision-making. Following that, the Group will leverage on its existing customer base, as well as other marketing and promotion efforts, to cross-sell its digital laboratory solutions. Having commercialised its “aikinz-Laboratory Information Management System” in 2020, there are approximately 24,000 online users across 41 countries for the period of one year up to the latest practicable date (being 16 September 2022).
While LMS Compliance currently does not have a ﬁxed dividend policy, its directors intend to recommend and distribute dividends of a minimum of 20% of its proﬁt attributable to owners of the Group in respect of the FY2022, FY2023 and FY2024 financial years.
The issuer is solely responsible for the content of this announcement.