AsiaPhos IPO attracts strong interest at 3.8 times subscribed

Catalist trading debut commences Oct 7.

AsiaPhos Limited (AsiaPhos), a Singapore-headquartered mineral resources company with vertically-integrated phosphate-based chemical production operations in the pipeline, announced today that its initial public offering (IPO) of 122 million Invitation Shares priced at S$0.25 each was approximately 3.8 times subscribed.

As at the close of the Invitation at 12.00 noon on 3 October 2013, there were 2,410 valid applications received for the 2 million Offer Shares available to the public for subscription and/or purchase. In total, these applicants applied for an aggregate of 345,319,000 Offer Shares, with application monies received amounting to approximately S$86.3 million.

The Invitation also comprised a placement tranche of 120 million shares which was fully taken up with strong interest. Application monies received for these Placement Shares amounted to S$30 million.

Based on the total Invitation size of 122 million Invitation Shares and the total valid applications received for 465,319,000 Invitation Shares, the Invitation was approximately 3.8 times subscribed.

United Overseas Bank Limited (UOB) is the Sponsor and Underwriter of the Invitation. Asiasons WFG Capital Pte. Ltd. is the Placement Agent of the Invitation.

Trading of AsiaPhos’ shares on the Catalist Board of the Singapore Exchange Securities Trading Limited (SGX-ST) is expected to commence on a "ready" basis at 9.00 a.m. on 7 October 2013.

The following parties have applied for and have been allotted and/or allocated 5.0% or more of the Invitation Shares: Credit Industriel Et Commercial, James Beeland Rogers Jr (known as Jim Rogers), Tan Chin Hock, and Unicorn Asset Management (Series NJ11) Limited.

Commenting on the response to the IPO, Dr Ong Hian Eng, Chief Executive Officer and Executive Director of AsiaPhos said, “We are encouraged by the positive response from the investors to our IPO which underpins our strong growth fundamentals. We are pleased to offer our new shareholders an opportunity to partake in the potential growth of the phosphate industry by leveraging on our phosphate exploration and mining business, and our vertically-integrated business strategy which will enable us to produce downstream phosphate-based chemical products. We are committed to delivering growth in shareholders’ value.”

“We are delighted to be the first mineral resources company solely focused on phosphate to be listed on the SGX, and also to be one of the 10 largest companies listed on Catalist in terms of market capitalisation,” added Dr Ong.

Based on the Invitation Price of S$0.25, the market capitalisation of AsiaPhos will be S$200 million upon listing.

According to an independent valuation report by Jones Lang LaSalle Corporate Appraisal and Advisory Limited, the fair market value of the Group’s two mines and P4 (a phosphate-based chemical product known as yellow phosphorus) plant, is between RMB1.0 billion (or approximately S$207.6 million) and RMB1.6 billion (or approximately S$332.1 million) with the preferred value being RMB1.3 billion (or approximately S$269.8 million) as at 31 March 2013.

As part of its strategy to vertically integrate its business, AsiaPhos plans to construct a thermal phosphoric acid plant and a sodium hexametaphosphate (SHMP) plant under Phase 2 of its Rebuilding Programme, in addition to its current P4 plant and sodium triphosphate (STPP) plant.

The vertically-integrated strategy will allow the Group to benefit from operational synergies such as raw materials price and supply stability, raw materials quality assurance, and sales and production flexibility.

In addition, the Group intends to carry out further mining and exploration activities, increase its portfolio of phosphate-based chemical products, and expand through acquisitions, joint ventures and strategic alliances with, inter alia, parties who create synergistic values with its existing business