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Straits Times
4 days ago
- Business
- Straits Times
Dezign Format targets $6.5m IPO on Catalist, eyes Malaysia expansion
Sign up now: Get ST's newsletters delivered to your inbox 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.
Business Times
01-08-2025
- Business
- Business Times
Dezign Format eyes gross proceeds of over S$6.5 million in Catalist IPO to build on its growth
[SINGAPORE] Growing up, Chong Nen Sing dreamt of using his skills in design and craft to start a business where he could work with his younger siblings. 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. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up '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.
Independent Singapore
03-07-2025
- Business
- Independent Singapore
Dezign Format targets IPO in Singapore on strong financial performance
SINGAPORE: Dezign Format Group, a design-and-build specialist firm, is preparing to list on the Catalist board of the Singapore Exchange (SGX). With a niche in experiential design in the MICE (meetings, incentives, conferences, and exhibitions) sector, the company has seen its earnings and revenues grow over the past three year. FY2022 saw it post earnings of S$1.6 million on revenue of S$18.3 million. Its earnings rose to S$3.3 million on revenue of S$26 million in FY2023. And in FY2024, earnings climbed to S$5 million on revenue of S$33.4 million. Experiential design, or experiential marketing, is a strategy for brands to develop emotional resonance with customers through immersing them in experiences that boost brand awareness. The methods used include live events, pop-up stores, virtual experiences, and interactive online campaigns. Cognitive Market Research estimates the global experiential marketing services market was worth US$52.614 billion in 2024. It is forecast to reach US$69.8 billion by 2033 on a compound annual growth rate (CAGR) of 3.6%. The Asia Pacific is set to lead global growth, with a CAGR of 10%. End-2024 saw Dezign Format with an outstanding order book worth S$23.89 million. Of this, S$10.47 million is recognised as revenue for the first quarter of FY2025. This indicates a strong pipeline and sustained demand. Dezign Format's business lines include custom environment design and fabrication, project management, festive and seasonal installations, commercial interior fit-outs and location-based entertainment and immersive experiences. Its key business is in offering integrated, turnkey solutions for large-scale projects. Most of its clients are organisations in the commercial, corporate and government sectors. Additionally, the company is capitalising on the growing demand for experiential design. Its plans to list come at a time of strength in Singapore's stock market. Shares are demonstrating resilience to global market uncertainty. The Straits Times Index (STI) breached the 4,000 mark on July 2, the second time it crossed the mark this year and is up 5.9% year-to-date. This outpaces the S&P 500's 5.4% growth. Analysts remain optimistic. UBS recently upgraded Singapore equities from 'neutral' to 'attractive,' citing disciplined capital management and currency strength as key advantages. Meanwhile, the Singapore Equity Strategy Mid-year Outlook released by Morgan Stanley in May notes how the Singapore market has been outperforming global stocks through the year. The share sale signals the company's intent to scale further and explore overseas markets in the region. Investors will be keeping note on Dezign Format to see how it leverages its strong order book and growth momentum in Southeast Asia's evolving experiential space in future quarters.
Business Times
30-06-2025
- Business
- Business Times
Mice design-and-build specialist Dezign Format eyes Catalist IPO, lodges preliminary prospectus
[SINGAPORE] A second company in two weeks is preparing to list on the Singapore Exchange's Catalist board, with Dezign Format Group lodging its preliminary prospectus on Monday (Jun 30). This follows a similar move by Lum Chang Creations on Jun 23, as part of its spin-off from mainboard-listed Lum Chang Holdings. In its offer document, Dezign Format said it provides events, exhibitions and decor services across various industries, including the meetings, incentives, conferences and exhibitions (Mice) sector. Its services span the design and fabrication of custom environments, project management and festive decoration works. The company also offers interior fit-out services for commercial spaces, and develops, licenses and commercialises location-based entertainment experiences. For FY2024, Dezign Format posted a net profit of S$5 million, up 53.8 per cent from S$3.3 million the year before. Revenue rose 28.5 per cent to S$33.4 million, from S$26 million previously. The company attributed this growth to stronger sales across all business segments. Looking ahead, it expects revenue to rise in FY2025, citing 'the rising demand for design-and-build services' in Singapore's Mice industry. It also believes it is 'well-positioned' to tap into the growing trend of experiential event offerings.
Business Times
30-06-2025
- Business
- Business Times
Another interior fit-out firm eyes Catalist IPO as Dezign Format lodges preliminary prospectus
[SINGAPORE] A second interior fit-out company is preparing to list on the Singapore Exchange's Catalist board in as many weeks, as Dezign Format Group lodged its preliminary prospectus on Monday (Jun 30). This follows a similar move by Lum Chang Creations on Jun 23, as part of its spin-off from mainboard-listed Lum Chang Holdings. In its offer document, Dezign Format said it provides events, exhibitions and decor services across various industries, including the meetings, incentives, conferences and exhibitions (Mice) sector. Its services span the design and fabrication of custom environments, project management and festive decoration works. The company also offers interior fit-out services for commercial spaces, and develops, licenses and commercialises location-based entertainment experiences. For FY2024, Dezign Format posted a net profit of S$5 million, up 53.8 per cent from S$3.3 million the year before. Revenue rose 28.5 per cent to S$33.4 million, from S$26 million previously. The company attributed this growth to stronger sales across all business segments. Looking ahead, it expects revenue to rise in FY2025, citing 'the rising demand for design-and-build services' in Singapore's Mice industry. It also believes it is 'well-positioned' to tap into the growing trend of experiential event offerings.
