<article>Singapore-based lubricant maker and trader United Global has lodged its preliminary offer document for a Catalist listing on the <a style="color: #000080;" href="http://dealstreetasia.com/tag/sgx" target="_blank">Singapore Exchange (SGX)</a>.</article>

Singapore-based lubricant maker and trader United Global has lodged its preliminary offer document for a Catalist listing on the <a style="color: #000080;" href="http://dealstreetasia.com/tag/sgx" target="_blank">Singapore Exchange (SGX)</a>.
The issue manager and sponsor of this IPO is <a style="color: #000080;" href="http://www.canaccordgenuity.com/en" target="_blank">Canaccord Genuity Singapore</a>, while <a style="color: #000080;" href="http://www.saccapital.com.sg" target="_blank">SAC Capital Private Limited</a> and <a style="color: #000080;" href="http://www.htisec.com/en/main.jsp" target="_blank">Haitong International Securities (Singapore)</a> are the joint placement agents.
<a style="color: #000080;" href="http://www.united-oil.com/index.aspx" target="_blank">United Oil Company</a>, a subsidiary corporation that commenced business operations in 1999, has established a portfolio of lubricant brands; United Oil, U Star Lube, Bell1 and HydroPure and other brands being to third-party principals are part of this product portfolio.
With its products retailing in more than 30 countries, its customer base covers those engaged in automotive, industrial and marine applications, as well as metal working fluids. As of 2015, more than 88 per cent of total sales were derived from outside Singapore.
Commenting on the Catalist listing, executive director and CEO Jacky Tan, who owns 40 per cent of United Global, stated: “In the years ahead, we will keep abreast of new developments in the lubricant industry, as well as expand into new markets, particularly exploring collaboration opportunities in developing countries.”
The remaining 60 per cent of the firm is held by United Global&#8217;s non-executive chairman, Wiranto. Tan’s father-in-law, Wiranto &#8211; who uses only a single name &#8211; possesses more than 30 years of experience operating mining and quarry businesses in Indonesia, sharing a professional background with Tan.
For the year ended 31 December 2015, United Global posted earnings of $6.2 million, an increase from $3.4 million in 2014 due to higher margins resulting from the <a style="color: #000080;" href="http://www.forbes.com/sites/brucemccain/2015/02/09/the-facts-behind-oils-price-collapse/#3b5933b9a60c" target="_blank">slump in oil market through the 2014/2015 period</a>. Revenue in the same period declined to $99.9 million from $118.7 million, also due to a drop in selling prices, aligned with the global decline in oil prices.
United Globals&#8217; assets include a lubricant blending facility with annual production capacity of 44,000 metric tonnes that can customise lubricants according to customers’ specifications.
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<h3 style="text-align: justify;">Future Prospects</h3>
The initial public offering (IPO) on Catalist comes at a time when the SGX Mainboard is <a style="color: #000080;" href="https://www.fool.sg/2016/05/16/why-are-companies-in-singapores-stock-market-delisting/" target="_blank">seeing a number of delistings</a>, as well as <a style="color: #000080;" href="http://www.straitstimes.com/forum/letters-on-the-web/free-sgx-from-regulator-role-to-focus-on-running-its-business" target="_blank">concerns over its joint role as a regulator</a>,
However, to date none of the firms have delisted from the Catalist board, which is a secondary board modeled on the Alternative Investment Market (“AIM”) of the London Stock Exchange and a successor to the defunct SESDAQ board.
It provides a platform for smaller enterprises to float their shares and facilitates rapidly growing enterprises by according issuers more flexibility in certain regulatory aspects, as compared to the SGX Mainboard.
A <a style="color: #000080;" href="http://foreignpolicy.com/2016/06/14/the-era-of-cheap-oil-is-coming-to-an-end/" target="_blank">report</a> by Foreign Policy noted that cheap oil prices are likely to increase in the near future, noting: &#8220;On Tuesday, the International Energy Agency said it expects the oil market to be balanced for the rest of the year, meaning the world will pump roughly as much oil as it consumes. That should nudge prices higher. Oil is currently trading around $50 a barrel, double the nadir reached earlier this year.&#8221;
This is likely to impact United Oil&#8217;s future financials, even as the <a style="color: #000080;" href="http://www.machinerylubrication.com/Read/29991/global-lubricants-market" target="_blank">global lubricants industry grows</a>, with the global lubricants market projected to grow at an annual rate of 2.5 per cent between 2014 and 2019 and attain a capitalisation of $162.3 billion by 2019.
With the Asia Pacific (APAC) the most rapidly growing lubricants market, with an annual growth rate of 3 per cent between 2014 and 2019, the APAC, Middle East and Africa are expected to drive growth in the lubricants materials market. In aggregate, these market accounted for nearly 51 per cent of the total market in 2013.
With United Oil&#8217;s basing in Singapore, which is highly central in the Indo-Asia Pacific, coupled with the growth of end-user industries in key nations such as China, India, and Iran, United Oil is well-positioned to leverage of the growth in these markets in building their revenue base and expanding business operations.
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Singapore: United Global seeks Catalist listing

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