[Editor’s note: The article has been updated to reflect additional comments from NoonTalk Media]
Homegrown media entertainment company NoonTalk Media’s IPO order book has been covered for both public and placement tranches, raising gross proceeds of S$4.8 million. The company’s shares will start trading today.
Of NoonTalk Media’s available 4.5 million public tranche shares, there were valid applications for 5.3 million shares, making it 1.2 times subscribed.
In addition, the 17.5 million placement shares available were also fully spoken for.
The shares were priced at 22 cents each, giving the company a market value of S$43.6 million.
Sheng Siong Group’s MD is one of NoonTalk Media’s anchor investors
The managing director of Sheng Siong Group, Lim Hock Leng, was one of its anchor investors. Hock Leng took up 4.4 million shares.
Meanwhile, Union Energy Corp took up two million shares, while Singapore-based family office Qilin Wealth Fund and former member of parliament and executive director of CITIC Envirotech Chong Weng Chiew took up 1.35 million shares each.
Dasmond Koh, NoonTalk Media’s executive director and CEO told Vulcan Post that “NoonTalk Media couldn’t have come this far without the support of everyone. By getting listed, I am able to give back to the local entertainment industry by expanding our footprint globally.”
“This IPO is not an end game for the company, but the start of realising our goal — to help develop our market to a more robust and dynamic one, where Singaporeans can own a piece of their culture,” he added.
NoonTalk Media’s revenue streams
Between 2020 and 2022, NoonTalk Media reported revenues of S$3.04 million, S$3.83 million and S$6.37 million respectively.
The company has two main revenue streams, its management and events arm, and its production arm.
Its production arm comprises services relating to multimedia creation and production, film and television production and video production, while its management and events arm comprises management of artistes and talent, management of studio venue and equipment, management of projects (including livestreaming services) and events conceptualisation.
NoonTalk was the appointed provider of production services for Chingay 2021 and 2022, which is organised by the People’s Association.
Some of the company’s other marquee projects in recent years are ChildAid 2021, an annual charity concert in aid of The Straits Times School Pocket Money Fund and The Business Times Budding Artists Fund. The company also produces films and television programmes.
However, its profits in the same period were S$73,939, S$189,244 and S$22,407 respectively.
Terence Tan, Chief Financial Officer of NoonTalk Media, explained that the significant gap between the company’s revenues and earnings were due to higher administrative expenses incurred.
“Our administrative expenses increased by S$745,933 or 76 per cent from S$981,968 in FY2021 to S$1,727,901 in FY2022. The increase was mainly due to (a) increase in professional fees and related expenses for the preparation for the Listing, (b) increase in depreciation of plant and equipment arising from renovation works performed following the extension of office lease, (c) increase in depreciation of right-of-use asset on arising from extension of office and studio lease at a higher rental rate, (d) staff costs and (e) others,” he elaborated.
The company’s loans and borrowings
As at 30 June 2022, the aggregate outstanding amount of NoonTalk Media’s outstanding borrowings
stood at S$4.15 million. The IPO document stated the breakdown of these borrowings, with the bulk of it (S$2.2 million) attributed to convertible bonds, followed by convertible loan (over S$1.44 million).
“Our borrowings are used for work capital purposes,” Terence told Vulcan Post.
Meanwhile, Noontalk Media’s remaining bank borrowings of about S$0.5m has interest rates ranging from 0 to 9.8 per cent, with loan maturities ranging from this year to November 2024.
Featured Image Credit: NoonTalk Media