Infinity Development Holdings is conducting an all-placement IPO on the Singapore Exchange’s (SGX) Catalist board, with trading set to begin on December 3, 2025. The Hong Kong-based adhesives manufacturer aims to raise S$11.1 million in net proceeds by issuing 35.1 million shares at S$0.39 each. This IPO is part of a strategic expansion effort and was preceded by a share consolidation on its existing Hong Kong-listed stock.
IPO details and financial context
Listing Venue and Date: Infinity Development will list on the SGX Catalist board on December 3, 2025, complementing its existing Hong Kong listing (HKG:640).
Fundraising: The company intends to raise S$11.1 million in net proceeds, or S$13.7 million in gross proceeds, via an all-placement of 35.1 million shares.
Valuation: The IPO is priced at a historical FY2024 P/E ratio of 7.2 times, based on an EPS of 5.4 cents in FY2024. The placement price of S$0.39 per share implies a market capitalization of S$123.5 million.
Use of Proceeds: The funds will be allocated as follows:
S$6.2 million for overseas expansion in markets like India.
S$2.4 million for potential acquisitions, joint ventures, or strategic alliances.
S$2.4 million for general working capital.
Placement Structure: The shares are being placed with a minimum of 200 independent investors. The placement is not underwritten.
Business and market outlook
Growth Prospects: Infinity Development sees strong growth in the Asian footwear adhesives market, with projections of a 4.5% to 5.5% compound annual growth rate over the next five years.
Market Position: The company positions itself as a leading footwear adhesive supplier in Asia, with operations in 10 locations and 400 employees.
Customer Concentration: A major risk is the company’s reliance on a few large customers. Its top five customers contributed over 30% of its revenue between FY2022 and H1 FY2025.
Geopolitical Risks: The company notes its exposure to geopolitical risks, such as tariffs.
Operational Details: Customers place orders “from time to time,” as the company does not have long-term contracts.
Share consolidation prior to the IPO
Purpose: To meet the minimum issue price requirement for its SGX listing, the company performed a share consolidation on its existing Hong Kong shares on a 2-for-1 basis.
Timeline: The share consolidation took effect on October 20, 2025, with trading of the consolidated shares commencing on November 4, 2025.
Impact: This reduced the number of shares and increased the share price per lot, which also changed from 4,000 to 2,000 shares.
Key Performance Indicators & Positive Aspects
Strong Financial Growth: The company has demonstrated robust earnings per share (EPS) growth, with a 34% per year increase over the last three years. In the first half of FY2025, net profit rose 38% year-on-year.
Consistent Dividends: The company pays a dividend and has an attractive yield (around 8.2%). Dividends have notably boosted the total shareholder return (TSR).
Market Position & Strategy: Infinity Development is a leading adhesives manufacturer in Asia, aiming for further expansion in India and Indonesia to capture a growing market for eco-friendly, high-performance adhesives.
Insider Confidence: Insiders hold a significant majority (75%) of the company’s stock, suggesting strong alignment between management and company performance.
Analyst Sentiment: At least one analyst has given a “Buy” rating with a price target above the current trading price.
Potential Risks & Concerns
Customer Concentration Risk: A significant portion of revenue comes from a handful of major customers (top five customers contributed about 44% of revenue in some periods), meaning the loss of any major contract could impact financials.
Market Competition & Raw Material Costs: The company operates in a highly competitive market and is exposed to fluctuations in raw material costs and currency risks.
Geopolitical Risks: The company is exposed to geopolitical risks, such as potential tariffs imposed by countries like the United States.
Lack of Long-Term Contracts: The company notes it does not have long-term contracts with customers, who place orders “from time to time”.
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