Union Gas kickstarts IPO on Catalist board

It plans to acquire LPG dealers.

Union Gas launched its initial public offering (IPO) on the Catalist listing, according to RHB News Bulletin.

The bottled gas supplier and compressed natural gas provider eyes planning to use the funds raised to acquire other LPG dealers and also move into the piped natural gas business.

It is offering 60 million shares, half of which are new shares at 25 Singapore cents each.

With an enlarged share capital of 200 million shares after the IPO, the group will have an initial market capitalisation of about $50m.

"Of the $5.72m expected in net proceeds from the new shares, about $4m will go towards the acquisition of retail LPG dealers, $1m to build piping infrastructure for the new piped natural gas business, and the rest will be used for working capital," RHB said.