SAG Holdings Ltd (SAG) Announces March 25th IPO

SAG Holdings Ltd (SAG) is planning to raise $7 million in an initial public offering on the week of March 25th, IPO Scoop reports. The company will issue 900,000 shares at $8.00 per share.

In the last twelve months, SAG Holdings Ltd generated $58.6 million in revenue and $2 million in net income. The company has a market cap of $50 million.

Spartan Capital Securities served as the underwriter for the IPO.

SAG Holdings Ltd provided the following description of their company for its IPO: “We are a holding company incorporated in the Cayman Islands. The ordinary shares offered in the IPO are being offered by the holding company. We are a Singapore-based provider of high-quality OEM, third-party branded and in-house branded replacement parts for motor vehicles and for non-vehicle combustion engines serving a number of industries. We distribute spare parts through operations primarily based in Singapore and global sales primarily generated from the Middle East and Asia. Through our On-Highway Business, we supply a wide range of genuine OEM and aftermarket parts for use in passenger and commercial vehicles bearing either the manufacturer’s brands or our in-house brands through SP Zone. Through our Off-Highway Business, we supply a wide range of components and spare parts for internal combustion engines with strong focus on filtration products through Filtec. Our Off-Highway Business serves industrial sectors that include marine, energy, mining, construction, agriculture, and oil and gas industries. Our products are sourced from genuine OEM and global premium aftermarket brands to suit the diverse needs of our customers. Over the past several years, our revenues have been relatively evenly split between our On-Highway Business and our Off-Highway Business, and approximately 10% of our revenues are derived from sale of our in-house products.   Our Group’s business can be traced back to the early 1970s, when our late founder, KE Neo, set up Chop Kim Aik, a retail shop specializing in the supply of British-made truck spare parts. KE Neo leveraged his experience as the owner of a transportation business with a fleet of trucks serving the construction industry to building a small retail shop to a large-scale operation with a solid customer base and a recognizable brand.   In 1983, we diversified into the supply of Japanese made automotive spare parts to capitalize on the increase in demand for Japanese vehicles in Singapore. Riding on this global growth of Japanese automotive exports, CE Neo, with the support of his father KE Neo, set up its first automotive spare parts retail outlet in Singapore, naming it Soon Aik Auto Parts Trading Co (which became a private limited company, Soon Aik Auto Parts Trading Co. Pte Ltd in 1995, and is now known and hereinafter referred to as “SP Zone”) specializing in trading Japanese made automotive spare parts, primarily used in passenger and commercial vehicles.   In the late 1980s, SP Zone achieved a major milestone when it was appointed as an authorized dealer of UD Trucks Corporation (“Nissan UD”) automotive genuine spare parts in Singapore, expanding our business of selling authorized genuine spare parts, beyond our historical aftermarket spare parts business model. The business gradually expanded, and the outlet grew to supply automotive spare parts for trucks operating in Singapore sold by respected Japanese brands from the manufacturers such as Nissan UD, Mitsubishi Fuso Truck and Bus Corporation, Hino Motors Ltd and Isuzu Motors Ltd.   In 1993, Jimmy Neo and CK Neo, brothers to CE Neo and sons of KE Neo, joined SP Zone, to assist with the expanding business. In 1995, Jimmy Neo was instrumental in securing the dealership with Cummins Asia Pacific Pte. Ltd (“Cummins”) for Fleetguard filters, a product used in Cummins engines, pursuant to which SP Zone started distributing filters to the marine, energy, mining, agriculture, oil and gas, and construction industries (referred to as the “Off-Highway Business”) in addition to the automotive industry (referred to as the “On-Highway Business”). In 1995, SP Zone became a private limited company and expanded its sales channels to include exports to ASEAN markets, capitalizing on unmet demand as there were few suppliers supplying automotive spare parts to those markets at that time. Another major milestone in 1995 occurred when Edward Neo, the third brother and son of KE Neo, joined our Group to manage the local wholesale and retail business, allowing CE Neo to focus on our Group’s newly expanded export business. At this point, the business had grown from a small retail operation to regional family business run by a father and his four sons with multiple areas of focus and utilizing the family member’s different areas of expertise.   In 1999, SP Zone secured another line of filtration products when it was appointed as a distributor for Parker Racor, a line of Parker Hannifin filtration products. Subsequently, we established Filtec as a separate Singapore subsidiary to carry out sales of Off-Highway Business dedicated to handling sales to our Off-Highway customers in the industrial sectors. In the early 2000s, Edward Neo spearheaded an effort to develop in-house branded brake parts and lubricant products, namely, VETTO and REV-1 in SP Zone, to enhance our competitiveness in the automotive industry. Over the years, the product range of our in-house brands has greatly expanded to include the NUTEQ steering and suspension parts, GENTEQ pumps and cooling system components, ELITO cables and hoses, SUNBLADE wiper blades, FILTEQ filters, and ENERGEO batteries.   In 2010, we consolidated and shifted our business operations to larger headquarters and warehouse that facilitated greater efficiency in our operations and also allowed us to increase our product inventory offerings. Through our On-Highway Business, we entered the Malaysian market by first taking a 70% equity stake, and by 2017 a 100% stake, in Autozone (M), an established company that sells wholesale automotive spare parts as well as the sale of our in-house brands in Malaysia. Since 2010, we have been selling to wholesale distributors based in Dubai as part of our strategy to expand our business. Like Singapore in Asia, Dubai is an important key trading hub in the Middle East serving customers not only in the Middle East, but also Central Asia, Africa and Europe. This business now represents an estimated 10.7% of our sales.   More recently, in 2019, our Off-Highway Business expanded to include the life science environmental industry, securing distribution and working in close collaboration with MANN+HUMMEL, a European-based multi-national company that provides a number of automotive and industrial commercial products, including filtration and related products with life science applications, for the distribution and promotion of their products in Singapore. In 2022, we underwent a reorganization. On February 14, 2022, Celestial obtained a 4.9% shareholding interest in SAGI from Soon Aik. On September 29, 2022, Soon Aik transferred the entire issued share capital of our group of companies, consisting of Filtec, SP Zone, Autozone (S) and Autozone (M), to SAGI. Subsequently on September 29, 2022, Soon Aik and Celestial transferred their respective shares in SAGI to the Company in exchange for equivalent proportional percentages of Ordinary Shares of the Company. Upon completion of the group reorganization, Soon Aik owns 8,915,625 shares and Celestial owns 459,375 shares, and SAGI, Filtec, SP Zone, Autozone (S) and Autozone (M) are indirect subsidiaries. **Note: Net income and revenue are in U.S. dollars (converted from Singapore dollars) for the 12 months that ended June 30, 2023. (Note: SAG Holdings Ltd. cut its IPO to 875,000 shares – down from 2.13 million shares – and doubled the assumed IPO price to $8.00 – up from $4.00 previously – to raise $7.0 million, according to an F-1/A filing dated March 1, 2024. This is a NASDAQ listing.) (Note: SAG Holdings Ltd. cut its IPO on June 14, 2023, in an F-1/A filing: 2.125 million shares – down from 3.75 million shares – and kept the assumed IPO price at $4.00 to raise $8.5 million. That’s a cut of 32 percent from the $12.5 million in estimated IPO proceeds under the previous terms. The selling shareholders’ portion was cut to 50,000 shares – down from 625,000 shares – according to the S-1/A filing dated June 14, 2023. The company will not receive any proceeds from the sale of the selling stockholders’ shares.) (Background: SAG Holdings Ltd filed an F-1/A dated April 14, 2023, in which it trimmed the size of its IPO by 16.67 percent to 3.125 million shares (3,125,000 shares) – down from 3.75 million shares – that the company will offer in the IPO – at an assumed IPO price of $4.00 – to raise $12.5 million. Background: The selling shareholders are offering an aggregate of 625,000 shares, according to the March 28, 2023, F-1/A filing. The company will not receive any proceeds from the sale of the selling shareholders’ shares. SAG Holdings also updated its financial statements in the F-1/A dated March 28, 2023. SAG Holdings Ltd filed its F-1 on Oct. 7, 2022: 3.75 million ordinary shares – no price range disclosed; of those 3.75 million shares, the F-1 says that the company is offering 3.125 million shares and the selling shareholders are offering 625,000 shares. )   “.

SAG Holdings Ltd was founded in 1975 and has 116 employees. The company is located at 14 Ang Mo Kio Street 63 Singapore 569116 and can be reached via phone at +65 6383 7540 or on the web at http://www.sag.sg.

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