Sarin Planning to Raise $9 -10 Million in Singapore IPO

Israeli diamond technology company Sarin Technologies is aiming to raise around $9.4 million in an Initial Public Offering in Singapore that begins on Friday (tomorrow). The company plans to float 62.2 million shares with the offering to end on April 6 and its shares are expected to start trading on April 8.

Sarin said it chose to float on the Singapore exchange since around 80 percent of its business is in Asia – particularly India, China, Thailand and Hong Kong. Sarin will be the first Israeli company ever to float its shares on the Singapore exchange.

The company’s Udi Lederer said that in addition to the exchange’s proximity to the vital Asian market, Sarin chose Singapore because the trading environment was more appropriate. “We couldn’t float on the Nasdaq exchange because we are too small, but Singapore is a good fit for a technology firm of our size,” Lederer said.

Sarin said around $2 million of the cash raised will be used for its expansion plans, including potential mergers and acquisitions, acquisition of intellectual property rights and establishing offices in new markets.

Approximately $2.5 million will be invested in product development and infrastructure, of which $1.75 million has been allocated for product development this year.

About $2 million will be used for expansion of production facilities for disposable polishing discs and the rest ($2.9 million) for general working capital purposes.

Among the machines Sarin produces are cut grading tools for round and fancy shapes, rough diamond optimization systems, gemology tools, diamond color grading, and laser marking machines.