Dezign Format eyes gross proceeds of over S$6.5 million in Catalist IPO to build on its growth
Starting out with subcontracting work alongside his brother Mike Chong, the founder of Dezign Format Group had a vision of working on a decoration project whenever he passed by the now-defunct Plaza Hotel along Beach Road.
His dream was realised in 1989, when the company secured a breakthrough contract at the hotel.
From that moment, the business grew steadily. Dezign Format now bills itself as a design-and-build specialist that provides events, exhibitions and decor services across various industries, including the meetings, incentives, conferences and exhibitions (MICE) sector.
With Mike Chong now serving as the group's executive chairman and chief executive officer, the company is about to reach another major milestone.
Dezign Format is set to raise S$6.5 million in gross proceeds through an initial public offering (IPO) on the Singapore Exchange (SGX), with a market capitalisation of S$40 million after listing.
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'This is the right moment for us to look into this next phase of growth.' said executive director Jonathan Chong – the son of founder Chong Nen Sing – in an interview with The Business Times.
The idea of going public was first conceived before the Covid-19 pandemic as a way for the company to 'jump to the next level', he said. Among other things, the company has ambitions of going regional and plans to scale through automation.
But the outbreak delayed those plans.
However, Dezign Format took the opportunity to rebrand and restrategise to better position itself.
Since 2022, its financial performance has steadily improved with revenue rising from S$18.3 million in FY2022 to S$26 million in FY2023, and further to S$33.4 million in FY2024.
With a niche in experiential design within the MICE sector, the company operates across three key business segments: event, exhibition and decor services; commercial and retail fit-out; and immersive location-based entertainment and experiences.
It is behind some of Singapore's most significant visual installations, events, and showcases – from Marina Bay Sands' Chinese New Year decorations to the Twenty3 Hospitality Suite for VIP guests at the 2024 Singapore Grand Prix and LKY: The Experience, an exhibition marking the 100th birth anniversary of Lee Kuan Yew.
Dezign Format's recent work includes an exclusive light installation, Chanel Winter Tale, featured as part of the Marina Bay Sands' 2024 Christmas display. PHOTO: DEZIGN FORMAT
'The act of going public will help us with creating value for our investors and stakeholders,'said Jonathan Chong, whose father founded the company 37 years ago in 1988.
He emphasised that the IPO is not an endpoint but a new beginning, helping to increase brand exposure and aligning with government efforts to support SGX listings.
Dezign Format is offering 32.5 million placement shares at S$0.20 each, according to its final offer document filed on Friday (Aug 1). The public offer will close on Aug 13.
Shares of Dezign Format will begin trading on the SGX Catalist board on Aug 15.
Evolve Capital Advisory is acting as the sponsor, issue manager and placement agent for the offering.
Net proceeds of S$4.8 million from the IPO will fund a range of initiatives, including focusing on its location-based entertainment business through the development of original content and licensing, pursuing mergers and acquisitions with synergistic companies and investing in automation.
The company sees regionalisation of the MICE industry and expansion in the location-based entertainment segment as its two main growth drivers, with the IPO expected to support developments in both areas.
Its directors intend to recommend a minimum 30 per cent dividend payout from its 2025 and 2026 profits to shareholders.
Humble beginnings
Mike Chong recalled that his brother often wore many hats from hand-drawing designs to managing on-site projects such as decorations for festive and window displays.
In its early days, Dezign Format required minimal capital as it focused on manual craftsmanship before automation and robotics became widespread. Costs then were limited to materials and project-based staffing.
However, its project-based work sometimes created cash flow challenges, especially due to payment delays over festive periods such as Chinese New Year.
Dezign Format CEO Mike Chong, seen here in a 1989 photo, has been in the industry for more than three decades. PHOTO: DEZIGN FORMAT
By 1998, Dezign Format had launched its own print department. It expanded with a sales office in 2013.
In 2019, the company entered the location-based entertainment (LBE) sector, co-developing original intellectual property such as DinoQuest with Science Centre Singapore.
The following year, the Covid-19 pandemic posed one of the biggest challenges in the company's history as it severely disrupted tourism and the MICE industry.
Even so, Dezign Format remained resilient. By retaining its team through the downturn, the company was well-positioned to capitalise on the post-pandemic resurgence in marketing campaigns and events in Singapore, which has emerged as a global MICE hub.
'Centring the business around our people and the clients is what helped us to reach where we are today,' Jonathan Chong said.
The road ahead
In the lead-up to its IPO, Dezign Format ramped up hiring to strengthen internal functions such as creative, project management and governance. This was aimed at enhancing readiness for both operational growth and public listing requirements.
The company currently employs 170 to 180 staff, with a diverse mix of local and foreign talent.
It has begun scaling up manpower to support its Malaysian operations, having acquired facilities in the Johor Special Economic Zone that are expected to be fully operational by the fourth quarter to boost production capacity.
With South-east Asia emerging as a promising growth region for MICE activities, Dezign Format is eyeing further expansion into Thailand and Vietnam.
Jonathan Chong sees location-based entertainment as a significant new pillar for the company and a 'blue ocean' opportunity, particularly in these markets where potential partners have already expressed interest.
As the company explores new frontiers, it is also navigating a leadership transition. The founders' children have begun stepping into key roles to support the business's ongoing transformation.
'In the industry, we are one of the few companies who have clear succession planning, and are in the midst of transitioning,' said Jonathan Chong, who joined the family business during the pandemic.
He added that the first generation has the experience and technical know-how while the second generation brings fresh perspectives to the table. This collaborative approach has been met with strong support from the founding team, who remain receptive to new viewpoints.
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