Magnitude International Prepares for $10 Million IPO Amid Declining Revenue

Magnitude International Ltd is preparing a $9.9 million IPO, despite reporting falling revenue and profits. The company provides electrical installation services in Singapore and has filed for registration with the SEC. The IPO aims to raise $9.9 million.

Magnitude International Ltd, a Singapore-based company specializing in electrical installation services, has filed for a $9.9 million Initial Public Offering (IPO) with the U.S. Securities and Exchange Commission (SEC). The IPO aims to raise funds to support the company's growth and expansion plans [1].

Magnitude International, which was founded in 2012, provides a variety of electrical installation services for both public and private housing, public facilities, and private commercial projects. The company's recent financial performance has shown a decline in revenue and profits. For the six months ended October 31, 2024, the company reported a total revenue of $5,502,524, a 48.1% decrease compared to the prior year [1].

The company's gross profit, gross margin, operating profit, and cash flow from operations have also decreased significantly. For the same period, the company reported a gross profit of $904,579, a 39.1% decrease compared to the prior year. The operating profit was $158,941, a 2.9% decrease compared to the prior year [1].

Despite the declining financial performance, Magnitude International plans to use the IPO proceeds to expand and grow its business through strategic acquisitions, joint ventures, and alliances. The company also plans to invest in its workforce, move to a bigger head office, and purchase materials for its projects. Additionally, the company plans to digitalize its systems and upgrade its existing equipment and software solutions [1].

The company's valuation expectations are considered to be excessively high compared to similar public companies in the engineering and construction industry. The company's enterprise value at IPO is expected to be approximately $149 million, with an EV/EBITDA ratio of 141.82 and a price/sales ratio of 12.45 [1].

Magnitude International's IPO is expected to be a low float stock, subject to potentially high volatility in open market trading. The company has only one underwriter, Bancroft Capital, LLC, for the IPO [1].

References:

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3S01NL:0-magnitude-international-files-for-offering-of-up-to-2-2-mln-ordinary-shares-in-us-ipo/