LHN Logistics has launched an all-placement IPO to raise gross proceeds of $5 million by issuing just over 25.2 million new shares at 20 cents each.
After deducting listing expenses, the net proceeds will be around $3.6 million.
Based on the IPO price, LHN Logistics is likely to have a market cap of around $33.5 million.
LHN Logistics, a spin-off from co-living space operator LHN, has two main business segments: transportation and container depot services.
Upon completion of the IPO, LHN will continue to hold a stake of 84.1% in LHN Logistics.
LHN Logistics plans to use the proceeds to expand its transportation fleet, buy moving equipment, and to also help finance the construction of its ISO tank depot at 7 Gul Avenue.
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LHN Logistics now owns 74 prime movers and 356 trailers. Its customers are mainly ISO tank operators, chemical traders, freight forwarders and chemical branches of oil majors.
PrimePartners Corporate Finance is the sponsor, issue manager and co-placement agent, while CGS-CIMB Securities is the other co-placement agent.
