5 Things Investors Need To Know About the Newly-Listed Trendlines Group Ltd

Bourse operator Singapore Exchange announced earlier today that Trendlines Group Ltd (SGX: 42T) is the 100th new listing on the Catalist board. With Trendlines’ shares starting trading just today, here are five important things investors may want to know about the company.

The business: An investment company

Trendlines is an investment company that focuses on the medical and agricultural technology sector.

It raises funds to invest in promising companies – that are in the aforementioned sectors – at the seed-stage level. Trendlines then helps its portfolio companies to grow, up till the point where the investment firm can successfully exist the investments. Exit strategies include merger and acquisitions as well as initial public offerings of the portfolio companies.

The investment strategy: Why medical and agricultural technology?

According to Trendlines’ IPO (initial public offering) prospectus, the company sees huge growth potential in the medical and agricultural technology sectors.

An ageing global population and the increasing affluence of emerging markets can both possibly lead to higher demand for better healthcare. Meanwhile, agricultural technology can also be important in the future as the global demand for food increases and environmental challenges become more critical.

Volatile earnings: Why is that so?

Given the nature of its business, Trendlines’ earnings would be volatile. This is because the company invests, for the long-term, in other companies at a very early stage of their lives. As the portfolio companies grow, most of them would very likely require additional investments. Trendlines would only see significant pay-offs when one or more of its portfolio companies have made successful exits.

For its past three fiscal years, Trendlines’ bottom-line had fluctuated between a loss of US$2.8 million and a profit of US$16.0 million.

The flow of capital

Trendlines had raised S$25.0 million in its IPO through the sale of 75.76 million shares at S$0.33 each in a private placement.

Here’s how the S$25 million will be allocated:

  • 23% would be used to cover the listing expenses.
  • 40% would be used as follow-on investments in Trendlines’ existing portfolio of compnies.
  • 20% has been earmarked for Trendlines’ expansion into new markets.
  • The remaining 17% would go toward the expansion of Trendlines’ labs and other operational expenses.


At S$0.33 per share, Trendlines has a market capitalisation of S$168 million. That equates to 1.4 times the company’s adjusted net tangible asset per share.

For more  investing analyses and important updates about the share market, check out the Motley Fool's free weekly investing newsletter Take Stock Singapore. This newsletter can teach you how to grow your wealth in the years ahead, so come take a look here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn't own shares in any companies mentioned.