Investors take note, Singapore-based ST Integrated Engineering is seeking to raise SGD 4 million to support its expansion strategy in SE Asia and the Middle East.
ST Integrated Engineering (STIE) announces its intention to raise SGD 4 million via a listing on Singapore’s first and only regulated private securities exchange, 1exchange (1X).
The Company offers Integrated Facilities Management solutions and Information Technology Services to both private and public sector clients in Singapore, Malaysia, Saudi Arabia, and the UAE.
STIE Chairman Mushtaq Ahmad says the company is entering its next major phase of growth, with a focus on strengthening IFM and ITS offerings and expanding its overseas operations.
“Our diversified customer base, characterised by long-term and large scale contracts has enabled us to think and operate as a sustainable and resilient business through economic cycles, anchored by smart technology and deep field expertise. This capital raising exercise will help us push forward further in our growth strategy of capability-building and market expansion,” says Ahmad.
According to Ahmad, STIE has more than 19 years of experience in the industry. He says the company develops complex, and customised IFM and ITS solutions for clients across industry verticals and diverse service offerings.
In Singapore, Ahmad says STIE has clients including the Building & Construction Authority (BCA), the Housing Development Board (HDB), and Pivotal (IT & Data Analytics); in the Middle East. It also has McDonald’s in Saudi Arabia and the Abu Dhabi Police in the UAE in its portfolio of clientele.
As digitalisation efforts continue to impact across all industries, Ahmad says the IFM sector is growing rapidly, as companies around the world continue to harness digital technology in their operations.
“Smart solutions that can manage, maintain, repair and integrate physical assets and facilities are continually being sought after, even as more smart buildings and cities are being developed,” says Ahmad.
Global spending in the Facilities Management market was valued at approximately S$1.58T in 2017, with the IFM segment accounting for 11.5% of this figure. The IFM industry is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.3% between 2017-2025. In addition, ITS market size is expected to grow at a CAGR of 8.5% from 2018 to 2025, valued at SGD 1,486 B by 2025.
According to Ahmad, the power of intelligent systems is increasingly being recognised in both developed and developing nations, with deployment across the value chain from the digitisation of established infrastructure, to the application of data analytics and cloud computing to optimise business operations.
“STIE is well-positioned to continue to capture this growth, as its smart solutions are required by almost every sector or industry, including in essential services such as utilities, aerospace and defence, telecommunications, supply chain and logistics, real estate and infrastructure. STIE intends to use the capital raised for the purpose of expanding into new markets and building new capabilities,” says Ahmad.
The capital raised will also be used to strengthen capabilities in anticipation of larger and more complex tender opportunities. STIE says it also intends to develop and implement more high-value IT solutions for its clients, as it focuses on the expansion of its IFM, ITS and Railway and Infrastructure Services.
According to Global Market Insights on the Railway Management System Market, the sector is expected to grow at a CAGR of over 10 per cent between 2018 and 2024.
Ahmad says STIE has participated in sizeable government and public sector contracts such as RapidKL and Hartasuma Sdn Bhd in Malaysia; the company intends to develop technology-infused solutions for the Rail and Infrastructure segment.
“Specifically, STIE intends to focus on the Rail and Infrastructure segment as part of our near-term growth strategy,” says Ahmad.
Global private capital platform CapBridge will lead the fundraising campaign. STIE intends to list a portion of its equity on 1X, which will facilitate trading of its shares after the conclusion of the campaign. 1X is regulated by the Monetary Authority of Singapore with a Recognised Market Operator License.
Singapore Exchange is a strategic partner and shareholder of CapBridge and 1X. The 1X platform enables private companies to create and list tradeable private equities, providing companies and shareholders with access to flexible financing and liquidity options. Private equities listed on 1X can be bought and sold by investors any time, with no lock-up period.
The ST Integrated EngineerIE campaign is accessible by Accredited Investors in Singapore and qualified investors globally, via the CapBridge investment platform.
In July 2019, CapBridge completed a fundraising campaign for a leading fund management company in Singapore for a listing on 1X. According to Ahmad, the offer was oversubscribed.
(Ed. An accredited investor refers to an individual whose net personal assets exceed S$2 million, whose financial assets (net of any related liabilities) exceed SGD 1 million or whose income in the preceding 12 months is not less than SGD 300,000; or a corporation with net assets exceeding SGD 10 million.)