IPO Update: T20 Holdings Finalizes Proposed IPO Plans


  • T20 Holdings has filed proposed terms for a $20 million U.S. IPO.
  • The company provides design, consulting and related construction services in the natural gas and general energy space.
  • TWEN has produced contracting revenue and profits in recent periods.
  • I'm on Hold for the IPO, although the low nominal unit price may attract day traders seeking volatility.
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A Quick Take On T20 Holdings

T20 Holdings Pte. Ltd. (TWEN) has filed to raise $20 million in gross proceeds from the sale of its units of common stock and warrants (TWENW) in an IPO, according to an amended registration statement.

The company provides a range of energy project-related design, management and construction services in Asia.

Management is asking investors at IPO to pay an EV/Revenue multiple of 8.5x on a company with sharply contracting revenue and profits since 2020.

Given the firm's downward trajectory, I'm on Hold for the IPO, although the low nominal price of the units may attract day traders seeking volatility.

T20 Overview

Singapore-based T20 was founded to provide energy and construction project activities for gas-fired facilities in Papua New Guinea to reduce the reliance on diesel power generation.

Management is headed by Chief Executive Officer Geoffrey Allan Lawrence, who has been with the firm since inception in 2014 and previously held various positions at Fuji Xerox, Ricoh, Toshiba and UPS.

The company's primary offerings include:

  • Contracting

  • Consulting

  • Engineering

  • Construction

  • Maintenance

T20 has booked fair market value investment of $11.4 million as of June 30, 2022 from investors including senior management and Fuato Limited.

T20 - Customer Acquisition

The firm has historically done business in Papua New Guinea, operating a 45-megawatt gas-fired power station.

The company has also developed floating storage, regasification and power generation technologies that it believes have significant application throughout the APAC region where numerous smaller islands and communities lack reliable energy sources.

T20 is also developing a geothermal energy project in Germany and is working on other potential projects in Indonesia and Australia.

Selling, G&A expenses as a percentage of total revenue have trended upward as revenues have varied, as the figures below indicate:

Selling, G&A

Expenses vs. Revenue



Six Mos. Ended June 30, 2022






(Source - SEC)

The Selling, G&A efficiency multiple, defined as how many dollars of additional new revenue are generated by each dollar of Selling, G&A spend, was 3.9x in the most recent reporting period, as shown in the table below:

Selling, G&A

Efficiency Rate



Six Mos. Ended June 30, 2022




(Source - SEC)

T20's Market & Competition

According to a 2021 market research report by ResearchAndMarkets, the global market for LNG regasification was an estimated 46,458 billion cubic feet in 2020 and is forecast to reach 68,292 billion cubic feet by 2025.

This represents a forecast average annual growth rate (AAGR) of 7.7%.

This expected rate of growth is almost double that of the period from 2015 to 2020.

Also, major countries accounting for regasification capacity in 2020 included the U.S., Japan, South Korea, Spain, and China.

Major competitive or other industry participants include:

  • New Fortress Energy

  • AES

  • Hoegh LNG

  • GasLog

  • Excelerate Energy

T20 Holdings' Financial Performance

The company's recent financial results can be summarized as follows:

  • Contracting topline revenue

  • Reduced gross profit but higher gross margin

  • Lowered operating profit

  • Variable cash flow from operations.

Below are relevant financial results derived from the firm's registration statement:

Total Revenue


Total Revenue

% Variance vs. Prior

Six Mos. Ended June 30, 2022

$ 4,318,268



$ 9,250,397



$ 34,623,956

Gross Profit (Loss)


Gross Profit (Loss)

% Variance vs. Prior

Six Mos. Ended June 30, 2022

$ 3,934,382



$ 8,134,012



$ 15,021,713

Gross Margin


Gross Margin

Six Mos. Ended June 30, 2022






Operating Profit (Loss)


Operating Profit (Loss)

Operating Margin

Six Mos. Ended June 30, 2022

$ 1,204,789



$ 3,574,090



$ 9,250,649


Net Income (Loss)


Net Income (Loss)

Net Margin

Six Mos. Ended June 30, 2022

$ 937,668



$ 2,919,285



$ 7,168,232


Cash Flow From Operations


Cash Flow From Operations

Six Mos. Ended June 30, 2022

$ 2,470,216


$ 255,158


$ (2,900,758)

(Glossary Of Terms)

(Source - SEC)

As of June 30, 2022, T20 had $603,104 million in cash and $6.5 million in total liabilities.

Free cash flow during the twelve months ended June 30, 2022, was $4.3 million.

T20 IPO Details

TWEN intends to sell 3.33 million units of common stock and one warrant per unit at a proposed midpoint price of $6.00 per unit for gross proceeds of approximately $20.0 million, not including the sale of customary underwriter options.

The warrant will become immediately exercisable at a price of $7.50 per common share.

No existing or potentially new shareholders have indicated an interest to purchase shares at the IPO price.

Assuming a successful IPO at the midpoint of the proposed price range, the company's enterprise value at IPO (excluding underwriter options) would approximate $105.2 million.

The float to outstanding shares ratio (excluding underwriter options) will be approximately 16.5%. A figure under 10% is generally considered a 'low float' stock which can be subject to significant price volatility.

Per the firm's most recent regulatory filing, it plans to use the net proceeds as follows:

Approximately $4 million for project acquisition costs for the Traunstein project, if acquired;

Approximately $4.1 million for project development costs and working capital to develop and execute for the Traunstein project; and

Approximately $7.3 million for general working capital and to develop additional projects.

(Source - SEC)

Management's presentation of the company roadshow is not available.

Regarding outstanding legal proceedings, management says the firm is not currently a party to or under threat from any legal proceedings that would have a material adverse effect on its financial conditions or operations.

The sole listed bookrunner of the IPO is EF Hutton.

Valuation Metrics For T20

Below is a table of the firm's relevant capitalization and valuation metrics at IPO, excluding the effects of underwriter options:

Measure (TTM)


Market Capitalization at IPO


Enterprise Value








Earnings Per Share


Operating Margin


Net Margin


Float To Outstanding Shares Ratio


Proposed IPO Midpoint Price per Share


Net Free Cash Flow


Free Cash Flow Yield Per Share


Debt/EBITDA Multiple


CapEx Ratio


Revenue Growth Rate


(Glossary Of Terms)

(Source - SEC)

Commentary About T20 Holdings

TWEN is seeking U.S. public capital market investment to fund continued development of its Traunstein project in Germany and for additional, unspecified corporate initiatives.

The firm's financials have reported reduced topline revenue, lowered gross profit but higher gross margin, reduced operating profit and fluctuating cash flow used in operations.

Free cash flow for the twelve months ended June 30, 2022, was $4.3 million.

Selling, G&A expenses as a percentage of total revenue have trended higher as revenue has fluctuated; its Selling, G&A efficiency multiple was 3.9x in the most recent reporting period.

The firm currently plans to pay no dividends on its ordinary shares for the foreseeable future. Any such dividends contemplated would be required by Singapore law to be paid only out of profits.

The market opportunity for providing LNG energy services is large and expected to grow considerably in the coming years as securing adequate and cleaner-burning energy supplies grow in importance.

EF Hutton is the sole underwriter and IPOs led by the firm over the last 12-month period have generated an average return of negative (64.1%) since their IPO. This is a bottom-tier performance for all major underwriters during the period.

The primary risk to the company's outlook is the volatile nature of energy prices, which may affect project development cycles.

As for valuation, management is asking investors at IPO to pay an EV/Revenue multiple of 8.5x on a company with sharply contracting revenue and profits since 2020.

Given the firm's downward trajectory, I'm on Hold for the IPO, although the low nominal price of the units may attract day traders seeking volatility.

Expected IPO Pricing Date: To be announced

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This article was written by

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