Trendlines IPO completed with strong investor interest

Editor’s note: The announcement about Trendlines IPO received significant attention in the media. Selected articles appeared in Straits Times, Next Insight, Business Times, Deal Street Asia, Channel News Asia,May Bank Kim Eng (video interview), Globes, and The Marker (Hebrew).

S$38.7 Million Total Proceeds Raised

  • Placement of 75,760,000 IPO shares priced at S$0.33 per share; IPO proceeds of S$25 million (US$17.7 million)
  • S$13.7 million (US$9.7 million) pre-IPO investment brings total IPO-related financing to S$38.7 million (US$27.4 million)
  • Indication of interests from investors significantly exceeded number of shares offered
  • BRAUN Melsungen AG, a global healthcare supplier, subscribed for S$7.1 million (US$5.0 million) of Trendlines’ shares
IPO Sounding the gong for the opening of trading

Sounding the gong for the opening of trading (l to r): Trendlines’ CFO Gabi Heller, Singapore Exchange EVP Chew Sutat, PrimePartners Corporate Finance Gerald Ong, Trendlines’ Chairmen & CEOs Steve Rhodes and D.Todd Dollinger, Ambassador of Israel to Singapore Yael Rubinstein, Trendlines’ Director Steve Haslett, Trendlines’ COO Yossi Ron.

The Trendlines Group announced on November 26, 2015, that further to the launch of its initial public offering (“IPO”) on the Catalist of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 16 November 2015, the placement of the IPO shares has been successfully completed. The Company is trading on ticker SGX:42T.

Trendlines offered 75,760,000 placement shares at S$0.33 per share, which was approximately 1.4 times price-to-book of Trendlines’ net tangible assets value as at 30 June 2015.

Trendlines received strong interest from investors during the road show, and indications of interests from investors significantly exceeded the number of shares offered. A total of S$25 million (US$17.7 million*) was raised, including S$7.1 million (US$5.0 million) from cornerstone investor B. BRAUN Melsungen AG (“B. BRAUN”), a healthcare supplier with global sales of healthcare products of €5.43 billion.

In the pre-IPO stage, Trendlines raised S$13.7 million (US$9.7 million) from investors, bringing total IPO-related proceeds to S$38.7 million (US$27.4 million).

Commenting on the successful placement of the IPO shares, D. Todd Dollinger, Co-Chairman and CEO of Trendlines, said, “It was encouraging to see the interest from investors. While Trendlines’ business model is unusual compared to most of the listed companies in Singapore, investors understood Trendlines’ ability to incubate technology-based companies in the medical and agricultural fields, bring them to commercialization, and achieve significant returns for investors. The value of investing in Trendlines is well validated by cornerstone investor B. Braun’s strategic investment in us.”

Steve Rhodes, Co-Chairman and CEO of Trendlines, added, “We believe that this successful placement establishes a great start for Trendlines’ trading on the Catalist of SGX-ST. The additional funds build Trendlines’ strong financial position, providing the flexibility to make follow-on investments in portfolio companies, expand into new markets, grow Trendlines Labs, and support and increase the number of portfolio companies.”

The trading of Trendlines’ shares on Catalist commenced at 9 a.m. on 26 November 2015. PrimePartners Corporate Finance Pte. Ltd. is the sponsor, issue manager and placement agent for the IPO.

*All currency conversion in the press release is based on USD/SGD of 1.41 as of 20 November 2015.