Procurri launches IPO of 68.88 million shares at S$0.56 each

SINGAPORE – Procurri Corp on Tuesday (July 12) launched an initial public offer (IPO) of 68.88 million new shares at S$0.56 each and is poised to become the Republic’s first non-real estate investment trust (REIT) to list on the SGX mainboard this year.

One of the subsidiaries of Catalist-listed DeClout Ltd, the data centre equipment and lifecycle services provider’s IPO comprises a placement tranche of 62 million shares and a public offer of 6.88 million shares.

The equipment it provides includes servers, storage and other networking equipment while lifecycle services refers to various information technology hardware, equipment and software services rendered during the lifecycle of IT hardware and equipment.

The IPO closes at noon on July 18 and the shares are expected to start trading at 9am on July 20.

Net proceeds from the IPO are expected to total around S$34.6 million and will be used for building a warchest for future mergers and acquisitions (M&A), enhance its infrastructure, and fund growth expansion plans, the company said.

The company also intends to recommend and distribute dividends of 25 per cent of net profit after tax for financial years 2016 and 2017.

“Procurri has established itself as one of the leading global providers of Data Centre Equipment and Lifecycle Services within a short span of time,” said Mr Sean Murphy, Procurri’s Global Chief Executive Officer.

“We believe that the fast-growing cloud services and data centre industry continues to bring exciting growth opportunities for Procurri, and our listing on the Main Board will help to raise our corporate profile and tap into Asia’s growth prospects, which will then translate into more business opportunities for the Group and propel our business to greater heights,” he added.

DBS Bank is the issue manager, bookrunner and underwriter for Procurri’s proposed listing.