3D Metalforge (ASX: 3MF) is poised to begin trading on the ASX today after raising $10 million in its oversubscribed IPO to officially acquire additive manufacturing entity 3D Infra and expand on its 3D production technology.
The company issued 50 million shares at $0.20 to raise the funds required to acquired Singapore-based 3D Infra which was established in 2016 and achieved $1.3 million in revenue during 2019.
Upon listing, 3D Metalforge will have an estimated market capitalisation of $38 million.
3D Metalforge chief executive officer Matthew Waterhouse described the ASX debut as “transformational” for the company.
“We now have a robust capital base to execute our expansion plans and are listing at a time when strong industry tailwinds are driving growth and innovation across the additive manufacturing sector,” he added.
3D Infra additive manufacturing technology
In developing the technology, 3D Infra has participated in numerous additive manufacturing research and development programs over the past five years. Collaborative work has been undertaken with Singapore’s national research institutions, universities and government linked organisations.
As a result, the company has built an intellectual property portfolio comprising hybrid part printing processes, secure file storage, advanced production techniques, along with operating parameters for a range of printers and materials including large format directed energy deposition (DED) printers.
In addition to securing the proprietary manufacturing technology, 3D Metalforge said acquiring revenue generating 3D Infra provided a multitude of advantages including “highly experienced” management, “blue chip” client-base, scalable business model, and the ability to expand on its technology.
According to 3D Metalforge, the 3D Infra additive manufacturing technology uses up to 90% less material, while also reducing energy required for part production by up to 25%.
Another advantage is that parts can be produced on-demand and near their end-use location, which can reduce transport time, costs and related emissions.
Every eight minutes a part is printed at 3D Infra’s Singapore plant for a client in either energy, maritime, defence and manufacturing.
Funds from the IPO will go towards refining the additive manufacturing printing technology to boost speed, accuracy and quality.
The operational development of the DED printers will also be completed.
Another channel for IPO proceeds is growth initiatives including boosting production capacity at the Singapore facility, and opening a new plant in Houston in the US.
The company also plans to upgrade the Perth office in Western Australia in readiness for penetrating the nation’s resources, energy, industrial and defence sectors.
Mining sector presents opportunity
3D Metalforge noted a particular opportunity is using its technology in Australia’s renowned mining sector.
The company’s technology can help mining companies reduce operational delays – particularly where spare parts for essential equipment can be unavailable or have long wait times.
“By utilising our technology, we believe mining and resource companies can capitalise on a more energy-efficient as well as a material-efficient mode of operation,” Mr Waterhouse said.
“This sector is constantly looking for more cost-effective and sustainable solutions to their supply chains,” he added.