FBS Global Limited Announces Closing of Initial Public Offering

Rhea-AI Summary

FBS Global (NASDAQ:FBGL), a Singapore-based green building contractor, has successfully closed its initial public offering (IPO) of 2,250,000 ordinary shares at $4.50 per share, raising gross proceeds of $10,125,000. The company's shares began trading on the Nasdaq Capital Market on February 6, 2025, under the symbol 'FBGL'.

The company has granted underwriters a 45-day option to purchase up to 337,500 additional shares at the public offering price. WallachBeth Capital serves as the Sole Book-Running Manager, with Revere Securities as Co-Manager. The net proceeds will fund business expansion, research and development in green building materials, potential strategic partnerships, and general corporate purposes.

Positive

• Successful IPO raising $10.125M in gross proceeds
• Listing on major exchange (Nasdaq Capital Market)
• 45-day option for additional 337,500 shares could provide extra capital
• Clear allocation of funds towards growth initiatives and R&D

Negative

• Potential dilution from over-allotment option if exercised
• IPO proceeds subject to reduction from underwriting discounts and offering expenses

Insights

Investment Banking Analyst

This IPO marks a strategic entry into the U.S. capital markets for FBS Global, though the $10.125 million raise is notably modest by Nasdaq standards. The pricing at $4.50 per share suggests a careful balance between accessibility and value perception, while the inclusion of a 15% over-allotment option provides flexibility to accommodate additional demand.

The timing of this IPO is particularly interesting, as it capitalizes on growing global emphasis on sustainable construction and ESG investments. The company's focus on green building materials and environmentally responsible construction methods positions it well within this expanding sector, especially in the rapidly developing Southeast Asian market.

Several key aspects warrant attention:

• The choice of Nasdaq listing provides enhanced visibility and access to a broader investor base, potentially facilitating future capital raises
• The relatively small float of 2.25 million shares could lead to higher volatility in trading
• The company's commitment to R&D in green building materials suggests a long-term growth strategy rather than immediate market expansion
• The involvement of WallachBeth Capital as sole book-runner, while not a bulge-bracket bank, aligns with the offering's size and could provide focused attention to ensure successful market debut

For investors, this IPO represents an entry point into the Asian green construction market, though the modest size suggests a need for careful evaluation of liquidity risks and growth execution capabilities.

SINGAPORE, Feb. 07, 2025 (GLOBE NEWSWIRE) -- FBS Global Limited (“FBS Global” or the “Company”) (NASDAQ:FBGL), a green building contractor with award-winning projects using green construction methods and sustainably-source and environmentally responsible materials based in Singapore, announced today the closing of its initial public offering (the “Offering”) of 2,250,000 ordinary shares par value US$0.001 per share at a price of US$4.50 per share to the public, for a total of US$10,125,000 of gross proceeds to the Company, before deducting underwriting discounts and other offering expenses.

The ordinary shares began trading on the Nasdaq Capital Market on February 6 , 2025, under the symbol “FBGL.” The Company intends to use the net proceeds for business expansion efforts, research and development regarding green building materials, potential strategic partnerships and for other general corporate purposes.

The Company has granted a 45-day option to the underwriters to purchase up to 337,500 additional ordinary shares, representing 15% of the ordinary shares sold in this Offering, at the public offering price, less the underwriting discounts, solely to cover over-allotments, if any.

WallachBeth Capital LLC is acting as the Sole Book-Running Manager of the Offering, and Revere Securities LLC is acting as the Co-Manager to the Offering. TroyGould PC is acting as U.S. counsel to the Company, and Ortoli Rosenstadt LLP is acting as U.S. securities counsel to WallachBeth Capital LLC in connection with the Offering. 

The Offering was conducted pursuant to the Company’s registration statement on Form F-1, as amended (File No. 333-283619) which was filed with the United States Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on February 5, 2025. The Offering was made by means of a prospectus, forming part of the registration statement. Copies of the final prospectus related to the Offering may be obtained, when available, from WallachBeth Capital LLC, Harborside Financial Center Plaza 5, 185 Hudson Street, Ste 1410, Jersey City, NJ 07311, by email at cap-mkts@wallachbeth.com, or by telephone at +1-(646) 237-8585. In addition, a copy of the final prospectus, when available, relating to the Offering may be obtained via the SEC’s website at www.sec.gov.

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 FBS Global Limited

FBS Global is a Singapore based green building contractor and an established interior fit-out specialist with a track record of over 20 years in institutional, residential, commercial and industrial building projects. As a green contractor, FBS Global seeks to tender bids for green building projects, use green construction methods, and sustainably-source and environmentally responsible materials for our construction projects. For more information, please visit: https://www.fbsglobal.com.sg.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and FBS Global Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Contacts:

FBS Global Limited:
Chong Ye Chew, Chief Financial Officer
Telephone: (65) 6285 7781
Email: chongye@finebuildsys.com.sg

WallachBeth Securities LLC:
Harborside Financial Center Plaza 5
185 Hudson Street, Ste 1410, Jersey City, NJ 07311
Telephone at +1-(646) 237-8585
Email cap-mkts@wallachbeth.com

FAQ

How much did FBS Global (FBGL) raise in its IPO?

FBS Global raised $10,125,000 in gross proceeds through its IPO by selling 2,250,000 ordinary shares at $4.50 per share.

When did FBGL start trading on Nasdaq?

FBGL began trading on the Nasdaq Capital Market on February 6, 2025.

What is the over-allotment option for FBGL's IPO?

Underwriters have a 45-day option to purchase up to 337,500 additional shares (15% of the IPO shares) at the public offering price.

How will FBGL use its IPO proceeds?

The company plans to use the net proceeds for business expansion, R&D in green building materials, potential strategic partnerships, and general corporate purposes.

Who are the underwriters for FBGL's IPO?

WallachBeth Capital is the Sole Book-Running Manager, and Revere Securities is the Co-Manager of the offering.