Reclaims Global’s S\$7.8 Million Share Placement Signals Aggressive Expansion Amid Singapore Construction Boom

Key Highlights for Investors

• Successful share placement: Reclaims Global Limited has raised S\$7.8 million through a fully subscribed placement of 20,000,000 new shares at S\$0.39 each.
• High-profile institutional demand: Investors include Lion Global Investors Limited, Asdew Acquisitions Pte Ltd, ICH Synergrowth Fund, Ginko-AGT Global Growth Fund, and Mr Tan Kim Seng.
• Strong sector momentum: Singapore’s construction sector is forecasted to sustain annual demand of S\$39 billion to S\$46 billion from 2026-2029, alongside S\$100 billion earmarked for coastal protection initiatives.
• Strategic allocation of funds: S\$4.5 million will be directed to capture new opportunities in the excavation/projects segment, while S\$3.0 million is allocated for working capital and fleet renewal.
• Robust financial performance: For 1H2026 (ended 31 July 2025), revenue surged 14.9% to S\$21.78 million, with net profit of S\$2.5 million. An interim dividend of S\$0.005 per share was declared, continuing a history of annual dividends of at least S\$0.01 per share.
• Track record and business model: The Group is an eco-friendly integrated service provider, specialising in excavation, demolition, logistics, leasing, and recycling of construction and demolition waste.
• Expansion plans: Buoyed by sector tailwinds and a proven foundation, Reclaims Global is targeting larger-scale projects and accelerated market presence.

In-Depth Analysis: Why This Placement Could Move the Share Price

Reclaims Global Limited’s announcement of a fully subscribed S\$7.8 million share placement is likely to draw significant investor attention in the coming weeks. The strong take-up by prominent institutional investors signals robust market confidence in the Group’s future trajectory and sector leadership. This capital infusion arrives at a pivotal moment, as Singapore unveils multi-year construction and coastal protection initiatives that could fundamentally reshape demand for integrated services like those offered by Reclaims Global.

Strategic Use of Proceeds

The Group’s decision to allocate S\$4.5 million of the placement proceeds to its excavation/projects segment is highly strategic. Singapore’s construction outlook, buoyed by government projections of up to S\$46 billion annually, presents unprecedented growth opportunities. The added focus on coastal protection projects, backed by a national budget of S\$100 billion, further expands the addressable market for specialised construction services. The remaining S\$3.0 million, earmarked for working capital and fleet renewal, positions the Group for operational resilience and scalability.

Business Model and Competitive Advantage

Reclaims Global operates across three synergistic segments: excavation services, logistics and leasing, and recycling. Its eco-friendly approach and integrated solutions resonate with the sustainability agenda increasingly prioritised in public works. Since its inception in 2009, the Group has established a reputation for reliable execution and timely delivery—critical factors for securing government and large-scale private projects.

Financial Performance and Dividend Policy

The Group’s latest financials underscore its growth momentum. For the half-year ended July 2025, revenue climbed to S\$21.78 million, with net profits of S\$2.5 million. This performance is complemented by a consistent dividend policy, with an interim payout of S\$0.005 per share and a track record of at least S\$0.01 per share annually over the last two years. Such returns are attractive for yield-focused investors and signal management’s confidence in cash flow sustainability.

Management Commentary

Executive Chairman Mr. Chan Chew Leh highlights the placement as a milestone, citing sector momentum and national investment in coastal protection as catalysts for long-term value creation. CEO Mr. Tan Kok Huat echoes this, emphasising the Group’s readiness to pursue larger-scale projects and expand market share through its integrated business model.

Potential Price-Sensitive Information for Shareholders

• This share placement and its full subscription by reputable institutional investors could signal increased liquidity and investor confidence—potentially driving the share price higher.
• Strategic deployment of new capital into fast-growing segments could accelerate earnings growth and position the Group to win major upcoming projects.
• The ongoing dividend policy, coupled with strong half-year earnings, may attract further interest from income-oriented investors.
• Singapore’s large-scale infrastructure and coastal protection programs present a multi-year tailwind for sector participants like Reclaims Global.

Conclusion

The successful S\$7.8 million share placement and robust sector outlook make this a potentially pivotal moment for Reclaims Global Limited. With risk-mitigated capital allocation and an established track record, the Group is well-positioned to ride the next wave of construction-led growth in Singapore. Investors should closely monitor upcoming project wins, operational execution, and further dividend declarations, as these are likely to impact valuation and 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 with financial advisors before making investment decisions. The opinions expressed herein do not necessarily reflect those of Reclaims Global Limited or its affiliates.

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