ST Integrated Engineering (STIE) is a leading home-grown engineering solutions provider with a proven track record and a strong customer base in the public and private sectors in Singapore and the Middle East
Fundraising proceeds will support an expansion strategy anchored by the development of high-value IT-based solutions and expansion to new markets
STIE is seeking to list a portion of its equity on 1exchange, Singapore first and only regulated private securities exchange
Singapore, 28 August 2019 ST Integrated Engineering (STIE or the Company), a Singapore-based multi-national engineering and IT solutions company, today announced that it is seeking to raise about S$4M via a listing on Singapore first and only regulated private securities exchange, 1exchange (1X).
The Company offers Integrated Facilities Management (IFM) solutions and Information Technology Services (ITS) to both private and public sector clients in Singapore, Malaysia, Saudi Arabia, and the UAE
Mr Mushtaq Ahmad, Chairman of ST Integrated Engineering, said: STIE is entering our next major phase of growth, with a focus on strengthening our IFM and ITS offerings and expanding our overseas operations. Our diversified customer base characterised by long-term and large-scale contracts has enabled us to think and operate as a sustainable and resilient business through economic cycles, anchored by smart technology and deep field expertise. This capital raising exercise will help us push forward further in our growth strategy of capability-building and market expansion.
Strong and Resilient Track Record in an Industry with a High Barrier of Entry
With more than 19 years of experience in the industry, the team at STIE counts among its strong client base both public and private sector entities. The Company develops complex yet customised IFM and ITS solutions for clients across industry verticals and diverse service offerings. With expertise across the entire scope of engineering, design, building, and maintenance, STIE has a well-established track record in an industry marked by a high barrier of entry because of the deep domain knowledge required.
In Singapore, it has clients such as the Building & Construction Authority (BCA), the Housing Development Board (HDB), and Pivotal (IT & Data Analytics); in the Middle East, the Company works with McDonalds in Saudi Arabia and the Abu Dhabi Police in the UAE.
STIE is led by a seasoned management team with experience spanning multiple industries and countries. With over 375 employees, the Company has offices in Singapore and India. STIE expects to continue increasing its staff strength and building even deeper expertise as it expands into new markets.
The IFM sector is growing rapidly, as companies around the world continue to harness digital technology in their operations. Smart solutions that can manage, maintain, repair and integrate physical assets and facilities are continually being sought after, even as more smart buildings and cities are being developed. Global spending in the Facilities Management market was valued at approximately S$1.58T in 2017, with the IFM segment accounting for 11.5% of this figure. The IFM industry is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.3% between 2017-2025 .
The fast-growing ITS sector works in tandem with STIE expertise in the IFM sector. The ITS industry market size is expected to grow at a CAGR of 8.5% from 2018 to 2025, valued at S$1486B by 2025 . The power of intelligent systems is increasingly being recognised in both developed and developing nations, with deployment across the value chain from the digitisation of established infrastructure, to the application of data analytics and cloud computing to optimise business operations.
STIE is well-positioned to continue to capture this growth, as its smart solutions are required by almost every sector or industry, including in essential services such as utilities, aerospace and defence, telecommunications, supply chain & logistics, and real estate & infrastructure.
Proceeds from Private Listing will Go Towards Expansion Strategy
STIE intends to use the capital raised for the purpose of expanding into new markets and building new capabilities. Leveraging on its deep experience and steady track record, STIE is planning to expand into more overseas markets. The capital raised will also be used to strengthen capabilities in anticipation of larger and more complex tender opportunities. STIE also intends to develop and implement more high-value IT solutions for its clients, as it focuses on the expansion of its IFM, ITS and Railway and Infrastructure Services.
Specifically, STIE intends to focus on the Rail and Infrastructure segment as part of its near-term growth strategy. According to Global Market Insights on the Railway Management System Market, the sector is expected to grow at a CAGR of over 10 per cent between 2018 and 2024 Having participated in sizeable government and public sector contracts in Malaysia, the Company intends to develop technology-infused solutions for the Rail and Infrastructure segment.
The STIE capital raising campaign is conducted by global private capital platform CapBridge. STIE intends to list a portion of its equity on 1X, which will facilitate trading of its shares after the conclusion of the campaign. 1X is regulated by the Monetary Authority of Singapore with a Recognised Market Operator License. Singapore Exchange is a strategic partner and shareholder of CapBridge and 1X.
The 1X platform enables private companies to create and list tradeable private equities, providing companies and shareholders with access to flexible financing and liquidity options. Private equities listed on 1X can be bought and sold by investors any time, with no lock-up period.
The STIE campaign is accessible by Accredited Investors in Singapore and qualified investors globally, via the CapBridge investment platform. In July 2019, CapBridge completed a fundraising campaign for a leading fund management company in Singapore for a listing on 1X. The offer was oversubscribed.
ST Integrated Engineering (STIE) is a multi-national engineering and Information Technology (IT) solutions company. Headquartered in Singapore, STIE works closely with its global clientele to design, implement, and maintain a full suite of engineering services and IT solutions. STIE operates across a wide range of industries across Asia and the Middle East, including infrastructure, transport, healthcare, and technology.
1. Headline: ST Integrated Engineering to raise S$4m via private listing on 1exchange Media: The Business Times Date: 28 August 2019 Link: https://www.businesstimes.com.sg/technology/st-integrated-engineering-to-raise-s4m-via-private-listing-on-1exchange
2. Headline: ST Integrated Engineering to raise S$4m via private listing on 1exchange Media: The Straits Times Date: 28 August 2019 Link: https://www.straitstimes.com/business/companies-markets/st-integrated-engineering-to-raise-4m-via-private-listing-on-1exchange
3. Headline: Local engineering firm to raise $4 million through private listing on 1exchange Media: The Edge Singapore Date: 28 August 2019 Link: http://www.theedgesingapore.com/capital/equity-raising/local-engineering-firm-raise-4-million-through-private-listing-1exchange
4. Headline: ST Integrated Engineering seeks to raise $2.9m via private listing Media: Deal Street Asia Date: 28 August 2019 Link: https://www.dealstreetasia.com/stories/st-integrated-engineering-private-listing-151512
5. Headline: ST Integrated Engineering to raise S$4m via private listing on 1exchange Media: Sgsme.sg Date: 28 August 2019 Link: https://www.sgsme.sg/news/money/st-integrated-engineering-raise-s4m-private-listing-1exchange
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