Y Ventures Group, which pitches itself as a data-driven e-commerce retailer and distributor, is seeking to raise up to $5.572 million (S$7.7 million) from its upcoming listing on Singapore Exchange’s Catalist board.
The issue manager and sponsor is RHT Capital and the placement agent is UOB Kay Hian. The firms’ initial public offer (IPO) will close on 7 July at 12 noon and commence trading on 11 July at 9 am.
The Singapore-based company is offering 35 million shares at S$0.22 cents apiece. It seeks to use S$6 million of its S$7.7 million IPO target to fund expansion via R&D of data analytics capabilities, advertising and developing its product range and new markets plus general working capital purposes, reports said.
Founded in 2004, Y Ventures boasts of retailing over 5,500 curated SKUs on 24 major online marketplaces across nine countries.
Post-listing, Adam Low Yik Sen, the executive chairman and managing director, and chief executive and executive director Alex Low Yi Ji will remain as controlling shareholders. Each is expected to hold 35.6 per cent of the total post-placement share capital.
“Capitalising on our data analytics capabilities, we partner with the world’s leading brands to sell their products in multiple countries across various online marketplaces,” Y Ventures posted on its website.
Y Ventures disclosed on its prospectus that it plans to “acquire distributors with strategic alignments and invest in consumer product brands, existing channel stores and overseas joint ventures.”
The firm said it drives sales for third party brands and its private label “JustNile” on online marketplaces such as Amazon, eBay, Qoo10, Lazada and Shopee with insights that it derives from its proprietary data analytics capabilities.
Y Ventures recently reported its revenue reached $12 million in 2016.
The company operates with a scalable business, given its focus on digital enterprise, but the firm will need to scale into faster-moving goods with higher margins to boost their profitability.
With the growth of e-commerce sector worldwide putting pressure on offline retailers, as well as growing proliferation of smartphone, this macroeconomic scenario is likely to underpin the growth of Y Ventures.