Wooden bedroom furniture maker LY Corporation has started trading on the catalist board of the Singapore Exchange, being the first company this year to launch an IPO.

It seeks to raise S$19.7 million (US$14.9 million) in gross proceeds.

Following the IPO, the Malaysian firm, which has market capitalisation of $127.2 million, will explore investments and JVs in procurement as well as collaborations with retailers or wholesalers.

In the first half of last year, LY Corporation recorded a 17.2 per cent increase in revenue to RM166 million (S$56 million/US$42.5 million) over the same period the previous year. Net profit was RM21.6 million, up 21.6 per cent.

As its bulky furniture does not suit markets like Malaysia and Singapore, LY says it will focus on China and the US where its style is “more appealing”.

Meanwhile, chief executive/executive director Tan Yong Chuan says there may be many uncertainties as it expands into China, “but right now, as far as our order book is concerned, we are quite optimistic”.