SINGAPORE – SKK Holdings Limited, a Singaporean civil engineering service provider, has set the price for its initial public offering (IPO) at $4.00 per share, aiming to raise $10 million in gross proceeds before underwriting discounts and offering expenses. The company, which is specialized in subsurface utility works such as cable laying and sewer rehabilitation, is offering 1,750,000 ordinary shares while the remaining 750,000 shares are being sold by existing shareholders.

The shares are scheduled to start trading on the Nasdaq Capital Market tomorrow under the ticker symbol “SKK”. The offering is expected to close on October 9, 2024, subject to customary closing conditions. Bancroft Capital, LLC is serving as the sole underwriter for the IPO.

SKK Holdings has over a decade of experience in public utility projects, contributing to the construction and maintenance of infrastructure that benefits society and the environment. The company’s services include power and telecommunication cable laying works, water pipeline construction, and sewer rehabilitation.

The IPO is conducted under the company’s registration statement on Form F-1, which was declared effective by the United States Securities and Exchange Commission (SEC) on September 18, 2024. The final prospectus for the IPO is available on the SEC’s website.

The press release issued by SKK Holdings contains forward-looking statements about the company’s expectations regarding the IPO. However, these statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.

This news article is based on a press release statement and aims to provide an unbiased summary of the key facts related to SKK Holdings Limited’s IPO pricing and details.

InvestingPro Insights

As SKK Holdings Limited prepares for its Nasdaq debut, InvestingPro data offers valuable insights into the company’s financial performance. In the last twelve months as of Q4 2023, SKK reported revenue of $9.76 million, with a modest growth of 1.43% over the same period. The company’s gross profit stood at $3.45 million, translating to a healthy gross profit margin of 35.39%.

SKK’s operating income for the same period was $0.42 million, resulting in an operating income margin of 4.32%. This indicates that the company has been able to maintain profitability in its core operations, which is crucial for a civil engineering service provider entering the public market.

An InvestingPro Tip suggests that SKK’s earnings per share have shown improvement recently. This aligns with the company’s reported basic and diluted EPS of $0.01 for continuing operations in the last twelve months, potentially making it an attractive proposition for investors looking at its IPO.

Another InvestingPro Tip notes that SKK has a high return on invested capital, which is supported by the company’s return on assets of 1.43%. This could indicate efficient use of capital in its subsurface utility works and other civil engineering projects.

These insights provide a snapshot of SKK’s financial health as it embarks on its IPO journey. Investors interested in a deeper analysis can access additional tips and metrics through InvestingPro, which offers a total of 12 additional tips for SKK Holdings Limited.

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