NanoFilm Technologies International Limited IPO Highlights

NanoFilm Technology International Limited | SGinvestors.io NanoFilm Technology International (IPO)

NanoFilm Technologies International Limited IPO Highlights

NanoFilm Technologies International IPO - Offer Details

  • Total number of Offering Shares: 77,236,200 (subject to the Over-allotment Option)
    • 73,374,300 Shares under the International Offering; and
    • 3,861,900 Shares under Singapore Public Offer.
  • Offer Price: S$2.59 per Share.
  • Issue Managers: Credit Suisse (Singapore) Limited & Oversea-Chinese Banking Corporation Limited.
  • IPO Proceeds: ~ S$452.5 million
  • Important dates:
    • Opening of the Singapore Public Offer: 23 October 2020 at 6.00 p.m.
    • Closing of the Singapore Public Offer: 28 October 2020 at 12.00 noon.
    • Commence trading on a "ready" basis: 30 October 2020 at 9.00 a.m.
  • Offer documents:
  • Total number of outstanding Shares immediately after completion of the Offering and the issue and sale of the Cornerstone Shares: 658,351,110.
  • Market Capitalisation: ~ S$1,705 million.

NanoFilm Technologies International - Company Background

  • The Company was incorporated in Singapore on 13 May 1999 under the Companies Act as a private company limited by shares under the name of Nanofilm Technologies International Pte Ltd by Executive Chairman, Dr Shi Xu, as a high-tech spin-off from the Nanyang Technological University (NTU), offering surface solutions based on vacuum deposition, including using our FCVA technology.
  • On 15 October 2020, the Company was converted into a public company limited by shares and changed its name to Nanofilm Technologies International Limited.
  • Refer to NanoFilm Technologies International's key corporate milestones of in page 182 of the Prospectus.
  • As at the Latest Practicable Date, NanoFilm Technologies International has over 300 customers across different industries. Key customers include Fuji Xerox, Nikon, Canon, Sunny Optial, TPR, Riken, Richo, Microsoft, Huawei, AAC, and several other companies including "a global technology company that designs, develops and sells consumer electronics, computer software and online services" that has not been identified due to confidentiality restrictions agreements with the customer. Refer to page 16 of the Prospectus for NanoFilm Technologies International's competitive strengths.

NanoFilm Technologies International's Key Business Units

  1. Advanced Materials – Provides advanced materials through surface solution services based on our vacuum coating technologies and processes. Includes both functional and decorative surface solutions;
  2. Nanofabrication – Manufactures and supplies nanoproducts, which are used by our customers as components for the functioning and performance of certain parts of their end-products, due to their nanoscale and/or nanofeatures. Includes components used in the optical lens and sensors industry; and
  3. Industrial Equipment – Manufactures and sells turnkey equipment systems ranging from coating equipment to auxiliary equipment such as cleaning lines to automation systems which are integrated into our customers’ manufacturing line.

NanoFilm Technologies International's Management Team

  • Executive Chairman: Dr Shi Xu.
  • Chief Executive Officer: Mr Lee Liang Huang.
  • Chief Financial Officer: Mr Lim Kian Onn.
  • Chief Commercial Officer: Mr Gary Ho Hock Yong.
  • Chief Operatin Officer: Mr Ricky Tan Chong Ho.
  • Chief Technology Officer: Mr Lars Ralf Rainer Lieberwirth.
  • Lead Independent Director: Mr James Rowan.
  • Independent Director:
    • Ms Ong Siew Koon @ Ong Siew Khoon,
    • Mr Kristian John Robinson,
    • Ms Lee Lee Khoon.

NanoFilm Technologies International's Business Strategies

  • Increase our market share in existing markets through a two-pronged approach of increasing sales to existing customers and by capturing new customers -
    • Continue to deliver high quality value-add at attractive cost-benefit payoffs;
    • Enhance sales and marketing capabilities to target new customers in our existing markets.
  • Upscale and integrate across the value chain of our customers' end-products by capitalising on value chain opportunities -
    • Leverage synergies across our business segments to offer our customers integrated solutions, for example, combining our surface solutions with nanofabrication capabilities;
    • Become a one-stop solutions provider for our customers for such technology-based solutions.
  • Expand into new high potential applications and end industries by leveraging our industry-agnostic technological capabilities -
    • Commenced initial discussions with select customers in the biomedical and Internet of Things ("IoT") optics industries, and are currently in the preliminary stages of R&D to explore the possibility of utilising our technology-based solutions to enhance their end-products;
    • In the process of developing surface solutions for medical implants and devices.
  • Maintain our technology leadership through R&D, and execute on operational improvement opportunities to drive profitable growth -
    • Continue to invest and build on our three core competencies – our R&D innovation and product development capabilities, our strong in-house engineering capabilities, and our solid efficient production capabilities;
    • Further strengthen our Quality Tracking System for real-time monitoring of key operations parameters and implement LEAN thinking philosophy to achieve improvements in quality while reducing production time and cost.
  • Pursue strategic inorganic opportunities through acquisitions and/or joint ventures -
    • Intend to undertake a disciplined approach by investing in or acquiring companies that fit our criteria and overall growth strategy;
    • Seek to enter into strategic partnerships or joint ventures with select key customers, with a view towards either achieving value chain integration in our existing markets, or to facilitate our entry into new attractive markets.

NanoFilm Technologies International - Prospects & Trends

  • Growth of total addressable market size for key segments.
  • Key Drivers of End-Market include
    • Smartphones: 5G implementation, replacement cycle, premiumisation trends and expanding services into components manufacturing;
    • Wearables & Accessories: Demand for nanotechnology solutions for products such as smartwatch bands;
    • Computers: New applications such as hinges and premiumisation trends;
    • Precision Engineering: Customer acquisition in existing end-market and new applications;
    • Automotive: Ramp up of joint venture with CYPR and diversification into other engine components and fuel cells;
    • Fast-Moving Consumer Goods Personal Grooming: Mass production of applications under development and intended expansion to include applications for other products;
    • Printing and Imaging: Increasing market share in the MFP industry;
    • Nanofabrication: Increase in demand for optical lens and sensory components in key end-markets such as computer, communications, and consumer electronics ("3C") and automotive markets.

NanoFilm Technologies International - Key Risks

NanoFilm Technologies International's Historical Financial Performance

  • Profit attributable to equity holders of Company –
    • Financial year ended 31 December 2017: S$26.9 million.
    • Financial year ended 31 December 2018: S$29.3 million.
    • Financial year ended 31 December 2019: S$35.8 million.
    • 6 months ended 30 June 2020: S$18.5 million (unaudited).
  • Refer to page 86 of Prospectus for more infromation on NanoFilm Technologies International's financials.
  • Refer to page 94 of Prospectus for Management’s Discussion and Analysis of Results of Operations and Financial Position.

NanoFilm Technologies International - Dividend Policy

  • The Company currently does not have a fixed dividend policy.
  • Moving forward, the Board intends to recommend and distribute dividends of at least 20% of our net profit after tax (excluding exceptional items) generated in the financial year ending 31 December 2021.

NanoFilm Technologies International - Use Of IPO Proceeds

  • 45% – Capital expenditure on development and building of new machinery for our Advanced Materials Business Unit and purchase of new machinery for our Nanofabrication Business Unit;
  • 25% – R&D and engineering for entry into new end-industries and new areas and/or products in existing markets;
  • 15% – Construction, refurbishment and renovation of new and existing production facilities;
  • 10% – General corporate and working capital purposes; and
  • 5% – Payment of underwriting commissions and offering expenses.

NanoFilm Technologies International IPO - Cornerstone Investors

  • At the same time as but separate from the Offering, each of the followings -
    • Aberdeen Standard Investments (Asia) Limited,
    • AIA Investment Management Private Limited,
    • Avanda Investment Management Pte Ltd,
    • Credit Suisse AG, Singapore Branch and Credit Suisse AG, Hong Kong Branch (on behalf of certain of their private banking clients),
    • Eastspring Investments (Singapore) Limited,
    • Employees Provident Fund Board (Malaysia),
    • Fullerton Fund Management Company Ltd.,
    • JPMorgan Asset Management (Singapore) Limited,
    • Lion Global Investors Limited,
    • Nikko Asset Management Asia Limited,
    • Principal Asset Management (S) Pte Ltd,
    • SMALLCAP World Fund, Inc. and American Funds Insurance Series – Global Small Capitalization Fund (which are funds advised by Capital Research and Management Company),
    • Venezio Investments Pte. Ltd. (indirect wholly-owned subsidiary of Temasek)
  • has entered into separate Cornerstone Agreements to subscribe for or purchase, at the Offering Price, an aggregate of 104,256,100 Cornerstone Share.

NanoFilm Technologies International IPO - How To Apply?

  • Applications for the Singapore Public Offer can be made through:
    • ATMs and Internet Banking websites of Oversea-Chinese Banking Corporation Limited, DBS Bank Ltd. (including POSB) and United Overseas Bank Limited;
    • Mobile banking interface of DBS Bank Ltd.; or
    • Printed WHITE Application Form, which forms part of the Prospectus.

NanoFilm Technologies International IPO Documents

Disclaimer: Information above is extracted and summarised by sginvestors.io according to NanoFilm Technologies International's IPO Prospectus & Product Highlight Sheet which are publicly available. This not an offer or a solicitation to deal in securities, nor an advice or a recommendation with respect to such securities.