To The Moon

$Deluge Corporation Limited(9DC.SI)$ is Singapore’s largest1 vertically integrated BCA “L6”-graded Fire Detection and Protection System (FDPS) contractor, providing an integrated, end-to-end suite of solutions spanning the full fire protection lifecycle with an extensive track record across diverse sectors in Singapore. 

The Group specialises in providing an integrated, one-stop suite of solutions across the fire safety value chain. It is organised into three business segments including:

• Integrated projects – provide comprehensive fire detection and protection engineering and M&E services for both land-based and offshore projects.

• Lifecycle services - provide ongoing maintenance and servicing solutions for installed fire detection and protection systems

• Products distribution, supplying fire detection and protection equipment alongside prefabricated pipes. 

The group has a proven track record in carrying out mission-critical fire protection work across Singapore. This includes work on fire protection on the Circle Line Stage 6, Changi Airport Terminals 1 and 2, Marina Bay Sands as well as Sengkang General Hospital.

Deluge is positioned to benefit from structural tailwinds such as robust construction demand in Singapore driving long-term FDPS requirements, data centres and critical infrastructure requiring higher-specification FDPS, and a growing FDPS market in Malaysia on higher data centre investments. 

Being one of only eight contractors holding the highest BCA "L6" ME06 grade, Deluge is allowed to tender for public-sector projects of unlimited value.

As at March 2026, its order book stood at S$410.8 million, anchored by large-scale contracts.

Deluge is raising gross proceeds of S$23.4 million and estimated net proceeds of S$20.1 million from the Offering and the Cornerstone Tranche. The Group intends to set aside S$9 million for funding strategic partnerships, acquisitions, joint ventures. It will also set aside a further S$9 million for business expansion through taking part in more tenders, securing more contracts and contracts of larger scale and working capital.

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Competitive Strengths based on the IPO Prospectus 

• Singapore’s largest vertically integrated “L6”-graded Fire Detection and Protection System (“FDPS”) contractor and a leading infrastructure contractor, with an estimated market share of approximately 8.3% in Singapore. As one of only eight contractors in Singapore holding the highest BCA “L6” ME06 workhead registration, the Group is qualified to tender for public sector projects of unlimited value.
   

• Strong order book anchored by large-scale contracts totaling S$410.81 million as at 31 March 2026 diversified across multiple sectors, providing clear earnings visibility over the next four financial years. Order book is supported by a portfolio of blue-chip, long-term customers, with longstanding relationships of up to 29 years
   

• Well positioned to benefit from the structural tailwinds in several fast-growing markets, with major national projects in Singapore, the rapid expansion of cross-border data centre capacity in Singapore and Johor, alongside growing FDPS demand in semiconductor fabrication, oil & gas, and biomedical manufacturing.
   

• Stable, recurring, high-margin lifecycle services post project installation where legally mandated safety requirements drive continuous, non-discretionary demand for the Group’s maintenance and upgrade services, creating a self-reinforcing cycle where project installations convert into sticky, multi-year service contracts, delivering long-term revenue resilience and structurally higher gross margins.
   

• Proven track record in the delivery of complex projects across specialised industries, delivering highly engineered systems for public transport, offshore floating assets, and mission-critical data centres. Navigating stringent regulatory and technical barriers allows the Group to secure major contracts and capture higher profit margins in specialised, high-growth sectors.
   

• Highly experienced management team with strong execution track record, led by Executive Chairman Mr. Vincent Cheo and Group CEO Mr. Lee Wai Wah, who bring over 35 and 30 years of industry expertise respectively and supported by financial leadership with a proven track record in SGX-ST listed companies.

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Key Strategies 

• Expansion of long-term customer relationships through installed base and lifecycle services across Singapore’s key infrastructure sectors. The Group aims to drive recurring revenue through inspection, maintenance, and upgrades for both its own and third-party fire systems through leveraging their S$410.81 million strong order book. The Group intends to allocate approximately 44.7% of the estimated net proceeds from the Offering and the Cornerstone Tranche towards working capital to support project delivery, contract asset financing and continued expansion of their integrated projects and lifecycle services businesses.
   

• Expand and strengthen integrated fire detection and protection platform through disciplined capital allocation, including bolt-on acquisitions, partnerships, joint ventures, investments, and selective regional expansion opportunities. As Singapore’s market leader with an 8.3% share, the Group intends to responsibly consolidate a highly fragmented fire protection market to enhance its technical expertise, while targeting overseas growth focused initially on Malaysian data centre projects. The Group intends to allocate approximately 44.7% of the estimated net proceeds from the Offering and the Cornerstone Tranche towards strategic partnerships, acquisitions joint ventures and selective regional expansion opportunities.
   

• Investing in infrastructure, facilities, and operational capabilities that strengthen long-term competitiveness of the Group, improve productivity and enhance support for a growing project portfolio. Expanding off-site prefabrication capabilities will help to achieve up to 60.0% in construction time savings, reduce reliance on on-site labour, and strengthen supply chain resilience. The Group intends to allocate approximately 10.6% of the estimated net proceeds from the Offering and the Cornerstone Tranche towards investments in strategic infrastructure, facilities and operational capabilities, including the expansion of their prefabrication capabilities and the acquisition of selected operating assets.

Key Risks (Refer to page 36 - 65 of the IPO Offer Prospectus for the full list)

• Subject to revenue and profit volatility due to majority of integrated projects business segment being reliant on invited and open tenders, and no assurance of renewal of lifecycle services contracts. A significant portion of revenue is also concentrated among major customers that make up 44.8% of FY2026 revenue.
   

• Heavily dependent on the construction industry in Singapore and Malaysia, where macroeconomic headwinds such as economic downturns, rising interest rates, or tightening credit can dampen property markets and reduce demand for new developments, thus impacting the volume of available tenders.
   

• Significant capital outlay required for project execution where procurement of specialised fire detection and suppression equipment and materials require upfront payment resulting in cash outflows for such procurement. Conversely, cash receipts from customers are generally received progressively in accordance with contractual payment milestones.
   

• Business operations, financial position and liquidity may be adversely affected by project delays arising from regulatory hurdles, client changes, or market downturns which can severely strain the Group’s liquidity and overall financial condition.

Financials & Valuation

Revenue

Gross Profit

• Revenue grew by 23.5% from approximately S$113.2 million in FY2024 to S$139.8 million in FY2025 before declining by 16.5% to approximately S$116.7 million in FY 2026, primarily due to a decrease in revenue from the Integrated Projects segment.

• The Group has a S$410.8 million order book as at 31 March 2026, expected to be progressively fulfilled over the next four financial years.

• Gross profit margin steadily expanded from 29.7% in FY2024, to 30.4% in FY2025, and reaching 33.2% in FY2026. The improved margins were mainly due to contributions from the Products Distributions and Lifecycle Services segments

• Over the same period, gross profit grew from S$33.6 million in FY2024 to S$38.8 million in FY2026. Based on the post-offering share capital, Deluge’s earnings per share was 6.00 cents in FY2026, giving it a trailing PE ratio of 10.0.

• The Group does not have a fixed dividend policy but its Directors intend to recommend up to 25.0% of net profits attributable to Shareholders as dividends for each of FY2027 and FY2028, subject to factors including cash and retained earnings, actual and projected financial performance, projected capital expenditure and expansion plans, working capital requirements and general financial condition, and the terms of borrowing agreements (if any).

IPO Details 

• Offer price at S$0.60 per share.

• 15.6 million shares offered comprising:

• 14.8 million shares under the placement tranche 

• 0.8 million shares under the public offer

• Estimated IPO market capitalisation, based on post-Offering share capital of 14.5 million shares, is S$87.0 million.

• The following Cornerstone Investors subscribed to 23.4 million shares at the Offer Price:

• Mr. Aw Chi-Ken, Benjamin, Executive Deputy Chairman and CEO of Hor Kew Corporation 

• Mr. Chin Mei Yang, Executive Director and CEO of Advancer Global

• Mr. Law Kim Lee, a business adviser based in Singapore focused on founder exits and business financing, primarily in the industrial sector 

• Mr. Deepak Lakhi Ramchandani, trading representative of Maybank Securities

• Mr. Lim Ah Cheng, former CEO of Dyna-Mac Holdings.

• Mr. Wang Yu Huei, managing director of Asdew Acquisitions Pte Ltd

• Amova Asset Management Asia Limited

• Ascend Open Master Fund VCC

• Avanda Investment Management Pte. Ltd

• HB Equity Partners

• ICHAM Master Fund VCC

• Maybank Securities (on behalf of certain high-net worth clients)

• Whitefield Capital Management Pte Ltd

Did you know?

Fire protection maintenance in Singapore is legally mandated, not discretionary. Building owners face fines of up to S$10,000 or imprisonment if they operate without a valid Fire Certificate. This strict regulatory environment guarantees a highly sticky, recurring revenue stream for Deluge’s Lifecycle Services segment, which consistently generates gross margins between 44% and 53%.

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