IWOW Technology $ iWOW Tech : NXR NaN% , a local technology provider that specialises in Internet of Things (IoT) solutions, capped its trading debut on the Catalist board of the Singapore Exchange (SGX) at S$0.26, up 4 per cent from its initial public offering (IPO) price of S$0.25. 

 

The counter opened at S$0.275 on Thursday (Apr 14), up 10 per cent or S$0.025 from its IPO price.

 

As at 9.05 am, the counter was trading at S$0.28, up 12 per cent or S$0.03 from the IPO price. iWOW was also one of the most actively traded stocks on SGX in early trade, with some 2.3 million shares changing hands as at 9.08 am.

 

As at 9.12 am, the counter had pared some gains from its opening price, with some 2.4 million shares traded. iWOW shares eventually ended the day at S$0.26, with a total of 15 million shares traded over the course of the day. 

 

iWOW had on Apr 6 launched its IPO, looking to sell a total of 26 million shares to raise gross proceeds of about S$6.5 million.

 

This placement constitutes about 10.4 per cent of iWOW' s enlarged share capital of 250.4 million shares. The company will have a theoretical market capitalisation of S$62.6 million after the placement, and a price-to-earnings ratio of 16.9 times.

 

As at the close of placement at noon on Apr 12, all 26 million placement shares were validly subscribed for, with indications of interest received for some 78 million shares, meaning that the IPO was about 3 times subscribed.

 

The group is notably one of the manufacturers of TraceTogether tokens. The company and electronics distributor Siix Singapore formed a consortium back in 2020, and went on to win one of the tenders to design and manufacture subsequent batches of the tokens. Another tender went to electronics manufacturer PCI.

 

Apart from these tokens, iWOW' s other products include smart-metering solutions to remotely monitor water and gas consumption, electronic monitoring devices for ex-offenders and accused persons, and alarm alert systems for the elderly.

 

As at Mar 8, TraceTogether tokens accounted for 16.8 per cent or S$11.3 million of the group' s S$67.4 million order book. Some S$54.2 million or 80.4 per cent of the order book comes from electronic monitoring systems. Smart-metering solutions constitute S$800,000, and alarm alert systems account for S$1.1 million.

 

For FY2021 ended March, the group posted net profit of S$3.7 million - up from S$220,000 in FY2020. This was due largely to a spike in revenue to S$26.4 million from S$4.4 million in the year ago. TraceTogether tokens accounted for 81 per cent of FY2021' s revenue.

 

Some 19.2 per cent of the total IPO proceeds, or S$1.25 million, will be used to strengthen the group' s research and development (R& D) capabilities to provide customisable IoT solutions a further 15.4 per cent or S$1 million has been set aside to enlarge the company' s customer base by engaging its existing B2B (business to business) customers and expanding offerings to the B2C (business to customers) segment.

 

Another 7.7 per cent or S$500,000 of the IPO proceeds will be channelled into expanding the company' s market reach into new countries such as Japan, Thailand, Malaysia, Indonesia and the UAE. Other uses of IPO proceeds include investments and merger and acquisition activities, as well as working capital and listing expenses.

 

Evolve Capital Advisory is the sponsor and issue manager of the IPO, while Futu Singapore is the underwriter and placement agent.

  TraceTogether token maker iWOW Technology' s initial public offering (IPO) on the Catalist board of the Singapore Exchange (SGX) was approximately 3 times subscribed, the company said in a press release on Wednesday (April 13).

 

As at the close of placement at noon on Tuesday, all 26 million placement shares were validly subscribed for, with indications of interest received for some 78 million shares, the company said.

 

Shares will commence trading on a " ready basis" at market open on Thursday.

 

Raymond Bo, chief executive of iWOW, said: " The positive feedback is an encouraging sign of investors' firm belief in our current IoT offerings and future vision. Listing on (the) Catalist (board) is a pivotal phase in our long-term development strategy.

 

" The move reaffirms our strong commitment to scaling operations and serving customers beyond Singapore," he added.

 

iWOW is a local technology provider that specialises in Internet of Things (IoT) solutions. The company had launched its IPO on Apr 6, looking to sell 26 million shares at 25 cents apiece, to raise gross proceeds of about $6.5 million. Net proceeds are expected to come in at about $5.2 million.

 

This placement represents about 10.4 per cent of iWOW' s enlarged share capital of 250.4 million shares. The company will have a theoretical market capitalisation of $62.6 million after the placement, and a price-to-earnings ratio of 16.9 times.

 

iWOW is one of the manufacturers of TraceTogether tokens. The company and electronics distributor Siix Singapore formed a consortium back in 2020, and went on to win one of the tenders to design and manufacture subsequent batches of the tokens. Another tender went to electronics manufacturer PCI.

 

Other than TraceTogether tokens, iWOW' s other products include smart-metering solutions to remotely monitor water and gas consumption, electronic monitoring devices for ex-offenders and accused persons, and alarm alert systems for the elderly.

 

For FY2021 ended March, iWOW posted a net profit of $3.7 million - up from$220,000 in FY2020. This was due largely to a spike in revenue to $26.4 million from $4.4 million in the year-ago period. TraceTogether tokens accounted for 81 per cent of FY2021' s revenue.

 

However, as at Mar 8, these tokens accounted for 16.8 per cent or $11.3 million of the group' s $67.4 million order book. Some $54.2 million or 80.4 per cent of the order book was from electronic monitoring systems. Smart-metering solutions constitute $800,000, and alarm alert systems, $1.1 million.

 

Evolve Capital Advisory is the sponsor and issue manager of the IPO, while Futu Singapore is the underwriter and placement agent.

 

Jerry Chua, chief executive of Evolve Capital Advisory, said: " We are pleased to act as sponsor and issue manager for iWOW, a truly leading Singapore, home-grown IoT player. This is in line with our philosophy of bringing growth-oriented enterprises focused on new economy verticals to the SGX Catalist platform."