Axcelasia Inc. - IPO Factsheet


Business
Axcelasia Inc. and its subsidiaries provide integrated professional services mainly in Malaysia to government-linked entities, private and public listed companies and multinational corporations. The four key business segments are tax advisory, business consultancy, enterprise management system (“EMS”) application and business support.

Competitive Strengths

Track record of providing specialised professional services
Axcelasia has established a track record and won numerous awards and recognition for its Tax Advisory services. Axcelasia is also the forerunner in providing Enterprise Risk Management (ERM) and business continuity consultancy services in Malaysia.

Integrated professional services provider
Axcelasia has the ability to tap into synergies across business segments to provide one-stop professional services including Tax Advisory, Business Consultancy, EMS Application and Business Support, which can be integrated to provide customised solutions to meet clients’ needs efficiently.

Leverages support network to achieve greater cost-efficiency
Axcelasia leverages on Taxand’s large existing client base and relatively flat management structure, allowing Axcelasia to provide quality professional advice at cost-effective fees to clients.

 ISSUE STATISTICS
Sponsor, Issue Manager, and Placement Agents :
Primepartners Corporate Finance Pte. Ltd
Prospectus :
Click here
Offering Price :
S$0.25
 Offering Size:
- 47.52m Placement Shares comprising:

(a) 35.52m New Shares

(b) 12.0m Vendor Shares

(c) There is no public offerings
Market Capitalisation (Post IPO) :
S$40.1m
PER (Post IPO) :
13.9x (Based on 2014A)
Intended Dividend Payout :
The Group currently does not have a fixed dividend policy
Gross Proceeds :
S$8.9m
Use of proceeds :
- (a) $6.5m, 73.2% for Expansion of business operations and processing facilities

- (b) $1.1m,  12.2% for General working capital

- (d) $7.6m - Net proceeds

- (e) $1.3m,  14.6% for IPO expenses
 Indicative Timeline :
 Placement Close :
25 November 2015, Wednesday, 12 noon
 Expected Listing:
27 November 2015, Friday 9 a.m (Catalist)

Business Strategies and Outlook

Expands operations in Malaysia and ASEAN region
Axcelasia intends to further expand its businesses in Malaysia to areas such as Johor Bahru and Penang and also to penetrate new ASEAN markets such as Indonesia, Vietnam, Singapore, Laos and Thailand.

Enhances range of professional services
Axcelasia aims to diversify range of professional services through mergers and acquisitions, joint ventures or strategic alliances. It also intends to enhance existing range of services to include, among others, share registrar and corporate finance advisory services.

Enhances office and support infrastructure
Axcelasia intends to enhance its office and support infrastructure such as business support services, knowledge management and information technology.

Increasing demand for services
Demand for the professional services in Malaysia and ASEAN region is expected to increase due to the implementation of GST in Malaysia, increasing scrutiny on transfer pricing by authorities, and pursuit of increased automation by companies and government related agencies. Such services which are ASEAN-focused are timely in view of the potentially dynamic growth in the region.

Key Risks

Unpredictable revenue and profitability
Axcelasia does not enter into long term contracts for its services, and thus has to continuously and consistently secure new clients and/or mandates.

Affected by changes in Malaysia and globally
Socio-economic, political, legal changes, and development in Malaysia and globally may affect business.

Obtaining licences, permits and approvals
Renewal and obtaining of licence is subject to approval from relevant authorities.

Potential liability claims
Clients may commence legal proceedings if Axcelasia does not meet their expectations in delivering quality professional services.

Lack of insurance coverage
Exposure to financial consequences arising from professional negligence claims. Limited insurance coverage may be insufficient to cover claims.

Dependence on the services of sub-contractors
Exposure to risk of liquidated damages due to loss or damage which arises from the default of sub-contractors.

Exposure to risk of unauthorised disclosure
Axcelasia is subjected to civil claims by its clients or criminal investigations by appropriate authorities if its client’s proprietary information is disclosed. This may generate negative publicity, causing them to lose clients and business.

Reliance on trademark and exposure to intellectual property infringement risks
Third parties may infringe and challenge intellectual property rights and ownership relating to the trademarks operated by Axcelasia.

Dividend Policy
The Group currently does not have a fixed dividend policy. (Read Report)

Source : DBS Group Research

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