Dezign Format targets $6.5m IPO on Catalist, eyes Malaysia expansion
The offering will comprise 32.5 million new placement shares at 20 cents each, according to its offer document filed on Aug 1.
SINGAPORE - Design agency Dezign Format is looking to raise $6.5 million through an IPO on the Singapore Exchange (SGX) Catalist board, which caters to fast-growing firms that may not yet meet mainboard listing requirements.
The offering will comprise 32.5 million new placement shares at 20 cents each, according to its offer document filed on Aug 1.
It is expected to hit a market capitalisation of $40 million after listing.
The IPO will close at noon on Aug 13, and shares of the company are expected to begin trading on Aug 15 at 9am.
Evolve Capital Advisory is the sponsor, issue manager and placement agent for the proposed IPO.
Dezign Format specialises in installations for meetings, incentives, conferences and exhibitions (Mice) events, as well as fit-outs for retail and commercial spaces.
Its most significant projects include the 2024 lunar new year decorations at Marina Bay Sands; an 'imaginary gardens' themed installation for jewellery brand Van Cleef & Arpels' collaboration with French artist Julie Joseph; and the DinoQuest exhibition in conjunction with the Science Centre.
Net proceeds of $4.8 million from the IPO will be channelled into business expansion plans that include joint ventures and mergers and acquisitions, particularly in the Mice sector and location-based entertainment space - a new division for the company.
The funds raised will also be used to develop proprietary intellectual property (IP) and acquire IP rights from around the world.
Regional expansion is also a priority for the the company, which currently employs 166 staff in its Singapore office.
Dezign Format is gearing up for expansion in Malaysia, its first overseas market, in the fourth quarter of 2025. The company expects its new 50,000 square feet facility in the Johor Special Economic Zone to boost production capacity while lowering operational costs.
It is also eyeing Thailand and Vietnam for future expansion, citing strong growth potential in the Mice sector.
The company had first broached the idea of going public in 2019, but those plans had to be put on the backburner due to the pandemic.
A post-Covid recovery reignited the company's listing ambitions, with profits rising to $5 million for the financial year ended Dec 31, 2024 from earnings of $3.3 million the year before.
Revenue rose to $33.4 million in FY2024, up from $26 million in FY2023.
Mr Mike Chong, chief executive and executive chairman of Dezign Format, said while Hong Kong was initially considered, the company ultimately decided to go public in Singapore due to the bulk of its business being located here, as well as proximity to the rest of South-east Asia for expansion.
He added that the Government's recent initiatives to revitalise the Singapore stock market, particularly its support for small and mid-cap stocks, also encouraged him to list the company.
Dezign Format was established in 1988 by Mr Chong and his elder brother Chong Nen Sing, and has been a family-owned company since.
With more second-generation family members joining the company's ranks bringing new ideas and vision, the company also needed to evolve, said Mr Chong.
'With this IPO, our objective is to bring this company forward from a family-run business to a future-ready enterprise with more structure and standardised systems in place.
'This would also attract more talent to join our company, which is very important for staff renewal.'
Mr Jonathan Chong, executive director of Dezign Format and son of the older Mr Chong, said the timing to list was ideal for the company's transition from the first to second generation of family business owners.
He added that the listing would also increase the company's standing and reputation.
'We want to strengthen the foundation that the first generation of family members have built to forge strategic alliances and partnerships.
'Listing the company would elevate our stakeholders' trust in us and increase our transparency and corporate governance, which is critical for our regional expansion plans.'
Dezign Format is the t hird homegrown company to list on the SGX amid a revival in IPOs so far this year, and the second on Catalist.
Singapore software company Info-Tech Systems, which listed on the mainboard in July 4, closed Aug 5 at 80 cents, down 12 per cent since listing. In contrast, local property revitalisation firm Lum Chang Creations closed at 38 cents, up almost 21 per cent since it began trading on July 21.
Another local firm, semiconductor optics company MetaOptics, lodged its preliminary prospectus for a listing on Catalist on July 30.
Two foreign companies have also joined SGX this year: Japan's NTT DC Reit, which is down 6 per cent since going public, and China Medical System, which is down 7 per cent.
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