ISOTeam’s S\$10 Million Fundraise Accelerates AI Drone Commercialisation in Singapore’s Construction Sector

ISOTeam Announces Strategic Fundraising to Support Digital Transformation and Drone Initiatives

ISOTeam Ltd., a prominent player in Singapore’s building maintenance and estate upgrading sector, has unveiled a major fundraising initiative to raise gross proceeds of S\$10.0 million. This move is set to propel the company’s digital transformation, with a particular focus on commercialising AI-powered drone technology for façade inspection, washing, and painting.

Key Highlights of the Fundraising Exercise:

• Share Placement: Placement of approximately 86.2 million new ordinary shares at S\$0.081 each, raising roughly S\$7.0 million.
• Convertible Bond Placement: Issuance of convertible bonds with an aggregate principal of S\$3.0 million, convertible into about 32.9 million shares at S\$0.091 per share. The bonds carry an attractive 4.0% annual interest rate and mature in 36 months, with flexible conversion rights up to 30 days before maturity.
• Placement Agents: SAC Capital Private Limited (Share Placement), SooChow Singapore Capital Markets (Asia) Pte. Ltd. (Convertible Bonds), and Maybank Securities Pte. Ltd. (Sub-placement agent).
• Timeline: Expected completion within eight weeks from announcement (by 11 September 2025).

Strategic Use of Proceeds: A Game-Changer for ISOTeam

• Drone Technology Development: Approximately 60% of net proceeds earmarked for commercialisation and final development of AI-driven facade painting and washing drones.
• Human Capital Investments: Remainder to fund general working capital, including hiring drone pilots, software engineers, and related talent to support the digital transformation.

Background: From R&D to Commercial Trials

ISOTeam’s journey into drone technology began in 2021, sparked by pandemic-driven manpower challenges. Collaborating with technology partners, the company developed AI-enabled drones for façade inspections. That same year, a Memorandum of Understanding with Nippon Paint (Singapore) Co. Pte Ltd was inked to advance autonomous façade washing and painting drones.

After 2.5 years of intensive R&D, ISOTeam is now in the final stages of regulatory approvals and commercial trials for its drone solutions. This pivotal fundraising will enable the company to bring its drone workforce to full operational readiness, supporting construction industry digitisation and enhancing efficiency, safety, and cost-effectiveness.

Key Executive Commentary

Anthony Koh, Executive Director and CEO, noted, “What started as a project to resolve manpower supply issues during the Covid-19 pandemic is finally coming to fruition. The drones can work quickly and tirelessly with greater accuracy. This will reduce our reliance on foreign workers and result in time and manpower cost savings as well as enhanced work-site safety.”

Koh also highlighted potential revenue opportunities beyond ISOTeam’s own projects, including leasing drones to industry peers or assisting them in developing custom drone solutions.

Potential Impact on Shareholders and Share Price

• Significant Dilution: The issuance of 86.2 million new shares and up to 32.9 million conversion shares represents a substantial increase in share capital, which could dilute existing holdings.
• Strategic R&D Investment: The focus on AI drone commercialisation positions ISOTeam at the forefront of construction tech innovation in Singapore, potentially enhancing long-term shareholder value through new revenue streams and improved operational margins.
• Operational Transformation: Reduced reliance on foreign labor, improved safety, and cost savings may lead to higher profitability and resilience, especially as the construction sector digitises.
• Commercialisation Milestone: Approval and rollout of drone technology could be a catalyst for share price appreciation, contingent on successful execution and market adoption.
• Convertible Bonds Structure: The 4% yield and conversion features may appeal to both equity and fixed-income investors, adding flexibility to capital structure.

About ISOTeam Ltd.

Founded in 1998 and listed on SGX Catalist since 2013, ISOTeam is an eco-conscious leader with 20+ years in Repairs & Redecoration (R&R), Addition & Alteration (A&A), and specialist services such as waterproofing, painting, retrofitting, landscaping, M&E, vector control, and handyman services. Major clients include town councils, government bodies, and private sector building owners. For more information, visit www.isoteam.com.sg.

Investor Takeaways

This fundraising marks a pivotal moment for ISOTeam, potentially reshaping its business model and sector positioning. Investors should monitor execution risks, regulatory approvals, and the pace of drone technology adoption, as these factors could materially influence future share price performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information herein is based on company disclosures and may be subject to change. ISOTeam’s share price may be affected by factors mentioned above, and performance is not guaranteed.

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