Skk Holdings Limited Announces Closing of $10.0 Million Initial Public Offering

Rhea-AI Summary

SKK Holdings (Nasdaq: SKK), a civil engineering service provider specializing in subsurface utility works in Singapore, has closed its initial public offering of 2,500,000 ordinary shares at $4.00 per share, raising $10.0 million in gross proceeds. The company sold 1,750,000 shares, while selling shareholders offered 750,000 shares. SKK's shares began trading on the Nasdaq Capital Market on October 8, 2024, under the ticker symbol 'SKK'.

After deducting discounts and expenses, SKK received net proceeds of approximately $5.26 million. The funds will be used to expand and renew equipment and vehicles, expand operational facilities, repay debt, explore business expansion opportunities, and for general working capital. Bancroft Capital, acted as the sole underwriter for the offering.

Positive

• Successfully raised $10.0 million in gross proceeds through IPO
• Received net proceeds of approximately $5.26 million for business expansion and working capital
• Gained access to public markets with listing on Nasdaq Capital Market
• Plans to expand and renew fleet of equipment and vehicles
• Intends to explore business expansion opportunities

Negative

• Potential dilution of existing shareholders due to new share issuance
• Company received only $5.26 million out of $10.0 million gross proceeds
• Selling shareholders' sale of 750,000 shares may indicate lack of confidence

Insights

Financial Analyst

The successful completion of SKK Holdings 's IPO marks a significant milestone for the company. Raising $10 million in gross proceeds demonstrates investor confidence in SKK's business model and growth potential. The net proceeds of approximately $5.26 million will provide substantial capital for strategic initiatives.

Key points to consider:

• The IPO price of $4.00 per share sets an initial market valuation benchmark.
• Listing on Nasdaq increases visibility and potentially improves access to capital markets.
• Planned use of proceeds for equipment expansion and debt repayment could strengthen the company's operational capabilities and balance sheet.
• The inclusion of selling shareholders in the offering may indicate some insider profit-taking, which warrants monitoring of future insider transactions.

While the IPO is a positive development, investors should closely watch SKK's ability to execute its growth strategy and deliver on financial expectations in the coming quarters. The company's performance in the competitive civil engineering sector in Singapore will be important for long-term success.

Market Research Analyst

SKK Holdings' IPO reflects growing investor interest in Singapore's infrastructure sector. The company's focus on subsurface utility works positions it well in a niche market with potential for steady demand. However, investors should consider several factors:

• Market reception: The stock's performance post-IPO will indicate market sentiment towards SKK and its sector.
• Industry trends: Singapore's urban development plans and infrastructure investments will significantly impact SKK's growth prospects.
• Competitive landscape: As a newly public company, SKK may face increased scrutiny and competition from larger, established players.
• Financial performance: Future quarterly reports will be critical in assessing SKK's ability to capitalize on its public status and utilize the raised capital effectively.

The $10 million raise, while modest by some standards, could provide SKK with a competitive edge if deployed strategically. Investors should monitor the company's execution of its expansion plans and any shifts in Singapore's infrastructure spending policies.

SINGAPORE, Oct. 09, 2024 (GLOBE NEWSWIRE) -- SKK Holdings Limited (“SKK” or the “Company”) (Nasdaq: SKK), a civil engineering service provider that specializes in subsurface utility works in Singapore, today announced the closing of its previously announced initial public offering (the “Offering”) of an aggregate 2,500,000 ordinary shares at a public offering price of $4.00 per share for total gross proceeds of $10.0 million, before deducting underwriting discounts and offering expenses. The Company sold 1,750,000 ordinary shares and selling shareholders sold an aggregate of 750,000 ordinary shares. The Company did not receive any proceeds from the sale of shares by the selling shareholders.

The shares began to trade on the Nasdaq Capital Market on October 8, 2024, under the ticker symbol “SKK.” The Company received aggregate net proceeds of approximately $5.26 million, after deducting discounts, expenses and expense allocations. Proceeds of the Offering will be used to expand and renew the Company’s fleet of equipment and vehicles, expand its operational facilities, for debt repayment, to explore other business expansion opportunities, and for general working capital.

Bancroft Capital, LLC acted as sole underwriter for the Offering. Troy Gould PC acted as U.S. legal counsel to the Company, and Taft Stettinius & Hollister LLP acted as U.S. legal counsel to Bancroft Capital, LLC.

The Offering was conducted pursuant to the Company’s registration statement on Form F-1 related to the Offering, as amended (File No. 333-276744), which was filed with the United States Securities and Exchange Commission (the “SEC”) and was declared effective on September 18, 2024.  The Offering was made only by means of a prospectus forming a part of the registration statement. Copies of the final prospectus relating to the Offering may be obtained by visiting the SEC’s website located at http://www.sec.gov or by contacting Bancroft Capital, LLC, 501 Office Center Drive, Suite 130, Fort Washington, PA 19034, Attention: Jason Diamond or email: investmentbanking@bancroft4vets.com or by telephone at 484-546-8000.

This press release has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About SKK Holdings Limited

SKK Holdings Limited is a civil engineering service provider that specializes in subsurface utility works in Singapore. We seek to plan, construct and maintain various public works and infrastructure projects that serve the society and the environment. We have over 10 years of experience in providing civil engineering services to our customers in Singapore in numerous public utility projects, including but not limited to power and telecommunication cable laying works, water pipeline works and sewer rehabilitation works.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors” in the registration statement on Form F-1 related to the Offering, may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Contact:

SKK Holdings Limited Contact:
Yee Yen Han
Chief Financial Officer
Telephone +65 6334 3831
skkcfo@skkworks.com.sg

Phaik Shya Koay
Financial Controller
Telephone +65 6334 3831
kelly.koay@skkworks.com.sg

Underwriter Inquiries:
Bancroft Capital, LLC,
501 Office Center Drive, Suite 130
Fort Washington, PA 19034
Email: investmentbanking@bancroft4vets.com

FAQ

How much did SKK Holdings (SKK) raise in its IPO?

SKK Holdings raised $10.0 million in gross proceeds from its initial public offering of 2,500,000 ordinary shares priced at $4.00 per share.

What is the ticker symbol for SKK Holdings on Nasdaq?

SKK Holdings trades on the Nasdaq Capital Market under the ticker symbol 'SKK'.

How will SKK Holdings use the proceeds from its IPO?

SKK plans to use the proceeds to expand and renew its equipment and vehicles, expand operational facilities, repay debt, explore business expansion opportunities, and for general working capital.

When did SKK Holdings (SKK) begin trading on Nasdaq?

SKK Holdings began trading on the Nasdaq Capital Market on October 8, 2024.

How many shares did SKK Holdings (SKK) sell in its IPO?

SKK Holdings sold 1,750,000 ordinary shares in its initial public offering, while selling shareholders offered an additional 750,000 shares.