Singapore software services firm Info-Tech Systems gears up for IPO on SGX mainboard
SINGAPORE – Local firm Info-Tech Systems has lodged its preliminary prospectus with the Monetary Authority of Singapore (MAS) for a listing on the mainboard of the Singapore Exchange (SGX), making it the second company to potentially list here in 2025.
The software services provider is planning to raise funds for further product development and expansion into new markets like Hong Kong and India. It also plans to hire more engineers and other executives.
Its cloud-based human resources and accounting software and digital payroll solutions are now used by over 23,000 organisations and more than 850,000 active users across Singapore, Malaysia, Hong Kong, and India, according to the firm's prospectus.
Info-Tech Systems' initial public offering (IPO) will comprise new shares issued by the company, alongside an offering of vendor shares by its executive chairman Peter Lee Kim Heng and executive director Yeoh Sin Yee. Mr Lee, who co-founded the company, will remain a key shareholder post-listing.
Vendor shares allow existing shareholders to cash out part of their holdings.
While pricing and final share allocation details have not been disclosed, the IPO has secured several cornerstone investors who have committed to buying 41.1 million shares.
They include institutional names such as Avanda Investment Management, Dymon Asia, Lion Global Investors, Nikko Asset Management, and Maybank Asset Management.
For the year ended Dec 31, 2024, Info-Tech cited top-line growth of around 15 per cent year on year to $43.7 million, thanks to a jump in revenue of its cloud accounting software. Net profit for the period grew 17.6 per cent, to $12.3 million.
Info-Tech's business growth depends on its ability to attract new customers, while retaining and expanding recurring subscription revenues from its existing client base.
In 2024, the company reported a high customer retention rate of 91 per cent for the year, and noted that the majority of its clients are small and medium-sized enterprises (SMEs).
It added that SMEs tend to be more agile in adopting new technologies, and are expected to drive continued demand for cloud-based workforce management, compliance, and payroll automation software.
If its IPO is successful, Info-Tech could be the second company to list on the SGX and the first to do so on the mainboard in 2025.
In April, auto-group Vin's Holdings went public on Catalist, while another company, candy maker YLF Group Marketing, halted its plans to list less than three weeks after it lodged its prospectus.
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