FILM and TV content producer mm2 Asia has launched the initial public offering (IPO) of its events production unit, the Unusual Group, on the junior Catalist board, seeking to raise about S$19.4 million via placement. There was no retail tranche.
The spun-off Unusual Group is offering 96.99 million placement shares at S$0.20 each, Catalist-listed mm2 said in a Singapore Exchange filing on Tuesday.
After the placement, Unusual's market capitalisation will be about S$128.6 million and the group's stake in the unit will be diluted from 51 per cent to 41.91 per cent, it added.
Unusual said in its offer document that its placement price worked out to a historical price-to-earnings ratio of 26.57 times, based on historical net earnings per share for its financial year 2015 and a pre-placement share capital of around 546.2 million shares.
The firm organises and promotes events such as concerts, mostly in Singapore. For the financial year ended December 2015, its net profit leapt to S$4.1 million from S$337,000 the year before, on the back of a 46 per cent jump in revenue to S$26.1 million.
It said the revenue growth was mainly due to events held for the "SG50" celebrations in 2015 plus promotion revenue from three concerts by Hong Kong and Taiwanese artistes in Singapore.
It said it planned to use the estimated S$17.4 million in IPO net proceeds to invest in promotion and production projects, to expand via acquisitions, joint ventures or "strategic alliances" and for working capital.
Singapore Press Holdings (SPH), which publishes The Business Times, was a pre-IPO investor in Unusual. Its unit SPH AsiaOne agreed in late 2016 to invest S$1 million in the firm.
Unusual said in its offer document that SPH, Apex Capital Group and Maxi-Harvest Group had each subscribed for a two-year convertible note with mandatory conversion into ordinary Unusual shares upon listing at a 15 per cent discount to the placement price.
The three will each have a 0.91 per cent stake in Unusual after the placement.
The placement is expected to close on April 6 and trading is expected to start on April 10. mm2 Asia shares ended 1.5 Singapore cents up at S$0.50 on Tuesday.
This article was first published on Apr 05, 2017.
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