FBS Global, a holding company for a construction and engineering business in Singapore, has revised its initial public offering (IPO) plans. The company now intends to sell 1.875 million shares, down from the previously announced 2.75 million shares. The expected price per share is set at a range of $4 to $5.
As a result of this downsizing, FBS Global anticipates net proceeds of approximately $6.94 million before expenses. This is a decrease from the initial expectation of $10.18 million. Despite the adjustment, the company remains focused on its strategic objectives.
The funds raised through the IPO will be allocated towards several key areas. FBS Global plans to utilize the proceeds for mergers and acquisitions, expansion of existing locations, research and development efforts, as well as working capital and general corporate needs.
In the first half of 2023, FBS Global reported a loss of $396,074 from a revenue of $6.65 million. However, the company remains optimistic about its future growth prospects.
The Nasdaq exchange has received an application from FBS Global to list its shares under the ticker FBGL. This move will provide investors with an opportunity to participate in the company's growth.
Chief Executive Kelvin Ang currently owns over 90% of the company before the IPO. After the offering, he is expected to retain control of approximately 71% of the shares.
Eddid Securities USA has been appointed as the underwriter for this offering. The company will guide FBS Global through the IPO process.