NTU spin-off firm Nanofilm may raise up to $376m in Singapore IPO

The company could raise up to S$510 million (US$376 million) in the initial public offering, which could become one of the largest “non-Reit” mainboard listings in recent years, according to Reuters, which cited sources familiar with the matter.

Temasek subsidiary Venezio Investments, Nikko Asset Management Asia, and JPMorgan Asset Management (Singapore), among others have committed to come onboard as cornerstone investors. They will purchase a total of around 104 million cornerstone shares at the offer price. As a result, Temasek will become a substantial shareholder in the company.

Nanofilm plans to use the proceeds to develop and build new machinery. The capital will also be used for research and development, engineering, the upgrade of new and existing production facilities, as well as general corporate and working capital purposes.

Nanofilm was founded in 1999 by an ex-associate professor at NTU, Shi Xu. The company focuses on advanced materials, nanofabrication, and industrial equipment.

It currently operates in Singapore, China, Japan, and Vietnam, serving 300 customers such as Fuji Xerox, Nikon, Canon, Microsoft, and Huawei. It recorded S$18.5 million (US$13.6 million) in net profit for the first half of 2020, up 62.3% from S$11.4 million (US$8.4 million) a year ago.

The IPO would be the first mainboard listing since March, following United Hampshire US Reit’s US$394 million IPO.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.36.