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Trading is expected to begin today, with Anacle System looking to raise between US$9 million and US$11.7 million

Singapore-based property and energy management systems startup Anacle Systems has filed for a listing on an exchange set up by the Hong Kong Stock Exchange (HKSE), the Growth Enterprise Market (GEM), according to a report by Techgoondu .

The startup is looking to raise between S$13 million (US$9 million) and S$17 million (US$11.7 million), with about 100 million shares will be placed with prices between 71 Singapore cents and 91 Singapore cents. After the listing, the startup’s market capitalisation will be between S$52 million (US$36 million) and S$68 million (US$47 million).

Trading is expected to begin today (December 16), with listing exercise had begun on April.

Anacle Founder and CEO Alex Lau explained that the startup chose to list in Hong Kong because it offers more publicity and better access to the larger number of investors and fund managers based in the area. The upgrade path to the main HKSE is also faster.

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“We’ll also have to show a profit of S$30 million (US$20 million) in the last financial year. This means we must at least have $100 million (US$69 million) revenue to get this profit. This is tough for small companies,” he said.

The startup plans to use the capital to fund expansion to China, Hong Kong, South Korea, and the Middle East. It will also double its team, which currently stands at 100 staffs particularly in engineering and sales and marketing departments.

Founded in 2006, Anacle’s two key products are a property management and an energy management system. It has secured clients such as Singapore Airlines, CapitaLand, Mapletree, and Singapore Ministries of Health and Education. The startup also operates in Malaysia, Taiwan and the Middle East.

The startup’s biggest shareholder is iGlobe Partners, which invested SG$1 million (US$693,000) in 2011. It went on to invest another SG$1 million (US$693,000) in 2013 when Anacle raised SG$5 million (US$3.4 million) in a round led by Majuven.

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GEM itself is an alternative stock market operated by Hong Kong Exchanges and Clearing Limited. According to information in its official site, GEM “does not require growth companies to have achieved a record of profitability as a condition of listing.”

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Image Credit: danielvfung / 123RF Stock Photo

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