Reclaims Global Limited IPO

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Reclaims Global Limited is offering 20 mil shares for its IPO on Catalist at $0.23 per share. The Group is offering 2 mil shares to public and 18 mil shares as placement which comprising 13 mil shares for placement and 5 mil shares reserved for subscription and/or purchase by the management, employees and business associates of the Group.

The IPO will raise around S$2.76 mil after deducting lisiting expenses of S$1.6 mil. The use of proceeds is as below.

IPO Proceeds

The timeline for IPO

Indicative Date and Time Event
1 March 2019, 6.00 p.m. Commencement of Offer
7 March 2019, 12.00 noon Close of Application List
8 March 2019 Balloting of applications, if necessary
11 March 2019, 9.00 a.m. Commence trading on a “ready” basis
13 March 2019 Settlement date for all trades done on a “ready” basis

Company Overview

RECLAIMS GLOBAL LIMITED is a Singapore-based eco-friendly integrated service provider in the construction industry, specializing in the recycling of construction and demolition (C&D) waste, customization of excavation solutions and operating fleet management. Our revenue is mainly derived from our three business segments of recycling, excavation services and logistics and leasing.

Business Overview

We have built an established reputation and a proven track record for effective execution and timely delivery of our services of different scales and nature since we began operations in 2009. As at the Latest Practicable Date, we owned 46 tipper trucks and 47 units of other construction and recycling equipment, including articulated dump trucks, excavators and mobile jaw crushers.

We are an ISO 9001:2015 and ISO 14001:2015 certified company. Our 20-mm recycled aggregate for concrete mixture has been granted the Singapore Green Label since 2011.

Reclaims Global Core Business

The Group also have ISO, OHSAS and BizSAFE Star certification which allowed them to tender for Goverment Projects.

Certifications

Financial Highlight

Revenue has been declining for the past FY and this could be due to lesser demolition thus lesser recyclable contributing to revenue. NAV per shares is 13.68 cents.

What I like

  • More BTO are in demand and older buildings are being demolish.
  • Civil engineering work also in demand.
  • Recycling of ferrous and non ferrous materials.
  • Logistics and Leasing services which provide good revenue. They also have in-house R&M team which reduce the cost for out sourcing.
  • Many ongoing projects with a bulk of it from Stats Board.

What I not so like

  • Raw material for recycling might face a shortage
  • Crusher machine not able to fully maximize capacity.
  • Highly affected by Government policies.

Conclusion

The company will likely to gain more market shares in the future but as of now, the revenue is declining YoY. However, there might be a potential for recycling process revenue to increase. I’ll press 10,000 shares at the ATM for some fun.

Author: The Financial Guy

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