Industrial drum supplier JBDI Holdings (JBDI) of Singapore priced its micro-cap IPO at $5.00 – the high end of its range – and sold 2.25 million shares – as expected – to raise $11.25 million on Monday night, Aug. 26, 2024. The terms in the prospectus showed a price range of $4.00 to $5.00. Of the 2.25 million shares that made up the IPO, the company offered 1.75 million shares and selling shareholders offered 500,000 shares. The company will not receive any proceeds from the sale of the selling shareholders’ stock. JBDI Holdings is incorporated in the Cayman Islands.
JBDI Holdings’ stock scored a moonshot – closing at $10.12 – up $5.12 from its $5.00 IPO price – in its first day of NASDAQ trading. (A moonshot occurs whenever a stock doubles its IPO price – or more – on its first day of trading.) That impressive finish was in stark contract to its quiet start: JBDI Holdings’ stock opened flat at $5.00 – its IPO price – at 10:20 a.m. EDT on Tuesday, Aug. 27, 2024, on volume of 190,483 shares, according to NASDAQ records.
Wilson-Davis & Co. and Dominari Securities were the joint book-runners.
JBDI Holdings traces its roots to 1983 when the founder and CEO Lim CP set up Jurong Barrels with a business partner as an attempt to develop the business of trading reconditioned containers. The business began in 1984 when Mr. Lim CP’s two brothers acquired all of his business partner’s shares in Jurong Barrels and Jurong Barrels acquired a plant to recondition used containers. They began trading reconditioned containers.
“Over the nearly last four decades, we have grown from a small reconditioning and recycling business to a comprehensive revitalization, reconditioning and recycling of drums business comprising a diversified range of drums, including open top drums, metal drums, plastic drums, plastic carboys and intermediate bulk containers,” the prospectus said.
“We have also, over the years, diversified into the business lines of the sale of new drums and the collection of waste drums and related products. In becoming aware of the necessity of reducing the impact of businesses on the environment, we began the provision of wastewater treatment through our direct wholly-owned subsidiary, JBD Systems.”
JBDI Holdings is profitable. For the 12 months that ended Nov. 30, 2023, JBDI Holdings reported net income of $0.4 million ($400,000) on revenue of $10.3 million.
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