Davis Commodities Ltd. (DTCK) plans to raise $5 million in an initial public offering (IPO) on Wednesday, September 13th, IPO Scoop reports. The company plans to issue 1,100,000 shares at $4.00-$4.50 per share.
In the last twelve months, Davis Commodities Ltd. generated $206.7 million in revenue and $4.6 million in net income. The company has a market-cap of $105.3 million.
Univest Securities served as the underwriter for the IPO.
Davis Commodities Ltd. provided the following description of their company for its IPO: “We are an agricultural commodity trading company, based in Singapore and specializing in trading of three main categories of agricultural commodities: sugar, rice, and oil and fat products. We distribute agricultural commodities to various markets, including Asia, Africa and the Middle East. We also provide customers of our commodity offerings with complementary, ancillary services such as warehouse handling and storage and logistics services. We are an asset-light business. We use an established global network of third-party commodity suppliers and logistics service providers in order to distribute sugar, rice, and oil and fat products to customers in over 20 countries as of the fiscal year ended Dec. 31, 2021. (Incorporated in the Cayman Islands) Â We source and market the commodities we distribute under two main brands:Â MaxwillÂ andÂ Taffy. We are also the exclusive distributor of theÂ LinÂ brand in Singapore. TheÂ MaxwillÂ brand is owned by us and is used for the sugar products and oil and fat products that we distribute outside of Singapore. We have an exclusive distributorship with the Thai Roong Ruang Sugar Group, a large sugar producer in Thailand, for the exclusive distribution of sugar products under theirÂ LinÂ brand in Singapore. We have also appointed Tong Seng Produce Pte. Ltd., an established distributor of rice, oil, sugar, flour and fiber products in Singapore, for the exclusive distribution of certain sugar products under ourÂ TaffyÂ brand. Â We specialize in the sourcing and distribution of sugar products, with sugar products contributing to approximately 80.8% of our revenue for the six months ended June 30, 2022, and 73.6% of our revenue for the six months ended June 30, 2021. Sugar products contributed to approximately 69.6% of our revenue for the fiscal year ended Dec. 31, 2021, and 66.4% of our revenue for the fiscal year ended Dec. 31, 2020. We procure sugar products from various origins in order to offer a wide range of sugar products to our customers in Singapore, as well as in different markets in Asia, Africa and the Middle East regions. We are a member of The Refined Sugar Association in London, which is the trade association for the international white refined sugar trade. We also source and sell a wide selection of rice products and oil and fat products to our customers in Africa and the Peopleâ€™s Republic of China, or the PRC. Â We pride ourselves on the quality of our products and our ability to provide a â€one-stop serviceâ€™ to customers.Â According to Frost & Sullivan Limited, whom we commissioned in June 2022 to produce the â€śThe Agricultural Commodity Market Independent Market Research Reportâ€ť (the â€śFrost & Sullivan Reportâ€ť), we were the largest sugar supplier in Singapore, based on revenue in 2021, with an approximate market share of 7.5% in the sugar market in Singapore. For the fiscal year that ended Dec. 31, 2021, our revenue was US$194.2 million – up 47.6% from 2020. **Note: Net income and revenue are in U.S. dollars (converted from Singapore dollars) for the fiscal year that ended Dec. 31, 2022. (Note: Davis Commodities Ltd. cut its IPO’s size by 68 percent to 1.09 million shares (1,087,500 shares) – down from 3.4 million shares (3,397,000shares) – and kept the price range at $4.00 to $4.50 – to raise $4.62 million, according to an F-1/A dated Aug. 22, 2023.) (Background: Davis Commodities Ltd. filed an F-1/A dated July 3, 2023, in which it changed the price range of its IPO to $4.00 to $4.50 – from $3.00 to $5.00 – and kept the number of shares at 3.4 million (3,397,000 shares) – to raise $14.44 million. Davis Commodities Ltd. filed an F-1/A dated June 26, 2023, in which it disclosed the terms for its IPO: 3.4 million shares (3,397,000 shares) at $3.00 to $5.00 to raise $13.59 million. Background: Davis Commodities Ltd. filed its F-1 on March 9, 2023, and did not disclose terms for its IPO – nor did it choose an exchange for its listing. The F-1 filing (March 9, 2023) states the the stock will be listed on either the NASDAQ or the NYSE – American Exchange. Davis Commodities Ltd. filed confidentially for an IPO on Oct. 21, 2022.) Â Â “.
Davis Commodities Ltd. was founded in 1999 and has 17 employees. The company is located at 10 Bukit Batok Crescent, #10-01, The Spire Singapore 658079 and can be reached via phone at +65 6896 5333 or on the web at https://maxwillgroup.com/.
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