Dezign Format Group Limited (IPO Symbol: DEZIGN.SI)
IPO Evaluation Summary
Purpose of IPO
- Expansion of production capacity: S$2.6 million (27.1%)
- Investment in digital assets and technology: S$1.9 million (19.8%)
- Geographical expansion into new markets: S$2.2 million (22.9%)
- Repayment of bank borrowings: S$1.0 million (10.4%)
- Working capital: S$1.1 million (11.5%)
This indicates a growth-driven IPO focused on scalability and digital transformation.
Dividend Policy
The Group intends to recommend and distribute dividends of at least 20% of net profits attributable to shareholders for FY2024 and FY2025.
IPO Placement and Share Information
- 2.0 million offer shares
- 18.0 million placement shares
- Total IPO: 20.0 million shares at S$0.48 each
- Post-IPO share capital: 160.0 million shares
Limited retail float and growth story support positive listing performance.
Institutional and Anchor Investors
No anchor investors disclosed. Placement supported by select institutional and private investors.
Investment Banker and Sponsor
SAC Capital Private Limited is the Sponsor, Issue Manager and Placement Agent.
Business Model and Industry
- Design and build services for commercial/retail spaces, exhibitions, experience centres
- Operations in Singapore and Malaysia, with expansion plans
Global experiential marketing industry was valued over US$80 billion in 2022.
Financial Health
- FY2022 Revenue: S$25.0 million
- FY2022 Net profit: S$2.8 million
- Net profit margin: ~11.2%
- Net cash position: S$3.3 million (as of 31 Oct 2023)
Market Position
Established relationships with clients like Lendlease, Singtel, Gardens by the Bay. Over 2,000 projects completed.
Management Team
- William Goh Chee Siong (Executive Director and CEO)
- Goh Chee Guan (Executive Director and COO)
- Tan Lay Cheng (Independent Director)
- Lim Yean Leng (Independent Director)
Sector and Economic Trends
Recovery of physical events and hybrid retail boosts sector demand. Lower interest rates support investor sentiment.
Timing of IPO
IPO coincides with rising appetite for Catalist listings and small-cap growth companies.
Risk Factors
- Customer concentration risk
- Project-based revenue sensitive to cycles
- Workforce dependency
Growth Strategy
- Expand into Indonesia, Vietnam, Australia
- Build digital/virtual design capabilities
- Strengthen production hubs in SG & MY
Ownership and Lock-in
- William Goh Chee Siong retains 63.75%
- 6-month moratorium, 6-month 50% lock-up
Peer Comparison
| Company |
Symbol |
P/E |
P/B |
Net Margin |
ROE |
Revenue (S$M) |
Market Cap (S$M) |
Dividend Yield |
Debt/Equity |
| Dezign Format Group |
DEZIGN.SI |
10.2x |
1.8x |
11.2% |
18.5% |
25.0 |
76.8 |
0% |
0.15x |
| Kingsmen Creatives Ltd |
5MZ.SI |
8.4x |
0.7x |
4.5% |
5.2% |
270.0 |
92.5 |
2.5% |
0.4x |
| Cityneon Holdings |
Delisted |
– |
– |
– |
– |
– |
– |
– |
– |
Same Period IPOs
- MoovPay Tech Asia Ltd
- IAG Holdings Ltd
IPO Outlook and Price Estimate
Estimated trading range: S$0.51–S$0.56, representing a 6%–17% upside from IPO price of S$0.48.
Dezign Format is offering 32.5 million placement shares at S$0.20 each, according to its final offer document filed on Friday (Aug 1). The public offer will close on Aug 13.
Shares of Dezign Format will begin trading on the SGX Catalist board on Aug 15.
Evolve Capital Advisory is acting as the sponsor, issue manager and placement agent for the offering.
Its directors intend to recommend a minimum 30 per cent dividend payout from its 2025 and 2026 profits to shareholders.
