Hong Kong adhesive manufacturer INFINITY DEV Holdings Kelly Board listed, opening performance mediocre | Lianhe Zaobao

Hong Kong adhesive manufacturer Infinity Development officially listed on the Catalist board of the Singapore Exchange on Wednesday (December 3), with its stock price initially rising over 2% to SGD 0.40 at the opening, but the upward momentum could not be maintained.

As of 10:20 AM, the company's stock price was SGD 0.39, the same as the initial public offering (IPO) price.

Infinity Development previously completed the placement of 35.1 million new shares at a placement price of SGD 0.39 per share, raising SGD 11.1 million. After the placement, the company's total share capital is approximately 316.78 million shares, with total fundraising nearing SGD 13.7 million and a market capitalization of about SGD 12.35 million.

The company's core business is the production and sale of adhesives required for shoe manufacturing, while also owning its own brand, with products mainly sold in Vietnam, Indonesia, Bangladesh, and China. The company has been rooted in the Asian footwear supply chain for many years and currently has 10 operational branches with a total of 400 employees.

The company plans to use SGD 6.2 million from this fundraising to expand its overseas market presence, SGD 2.4 million for acquisitions, joint ventures, or strategic alliances to promote business extension, and another SGD 2.4 million for general working capital.

According to the company's financial data as of March 31, net profit for the first half of the fiscal year increased by 38% year-on-year to HKD 56.6 million (approximately SGD 9.4 million). Excluding the listing expenses of HKD 3 million, net profit could reach HKD 59.6 million, with revenue rising 23% to HKD 409.3 million during the same period, and earnings per share before the placement were HKD 0.201, up from HKD 0.146 a year earlier.

Infinity Development stated that the company will actively consolidate its position as a leading supplier of footwear adhesives in Asia while prudently executing business strategies and controlling costs. The company will also continue to seek business expansion opportunities in Asia.

Looking ahead, the company expects the Asian footwear adhesive market to grow at a compound annual growth rate of 4.5% to 5.5% over the next five years, reaching a market size of USD 1.2 billion to USD 1.8 billion (approximately SGD 1.56 billion to SGD 2.33 billion) by 2029.

The company also reminds investors of potential risks, including geopolitical uncertainties caused by US-China trade tensions, cost increases due to inflation, intense market competition, and reliance on a few major customers. Over the past three years, these few major customers have contributed more than 30% of revenue