Deluge Corporation is Singapore's largest fire detection and protection contractor, with an estimated 8.3% market share in 2025 according to Frost & Sullivan, and it earns most of its money by installing fire systems in large buildings and infrastructure, with a smaller and steadier income from maintaining them for years afterwards.

The company is listing on the SGX Mainboard at S$0.60 a share. The offer is 15.6 million new shares, of which only 800,000 are in the public offer, and a further 23.4 million shares go to cornerstone investors.

That gives a market value of about S$87 million. The public offer closes on 14 October 2026 at 12 noon, and trading is expected to begin on 16 October 2026. In the year to 31 March 2026 (FY2026), revenue fell 16.5% to S$116.7 million and net profit fell 34.1% to S$11.8 million, so this is a business with a lumpy income statement. Here is how Deluge makes its money, and what the numbers do and do not tell us.

Deluge Corporation Limited is the listing vehicle for a fire protection business that has operated since 1983. It designs, prefabricates, installs, tests and maintains fire detection and protection systems. That covers active systems such as alarms, detectors, sprinklers, water mist, foam and gas suppression, and passive ones such as fire-resistant structural elements and fire-stopping.

Its work includes fire protection for the Circle Line Stage 6 and North East Line extension rail works, Changi Airport Terminals 1 and 2, Sengkang General Hospital and Marina Bay Sands. It is also one of only eight contractors in Singapore with the highest L6 grade in the BCA's fire protection workhead, which lets it tender for public sector fire protection projects of unlimited value.

In plain terms, the public portion of this IPO is small. Of the 39 million new shares being issued in total (15.6 million in the offer plus 23.4 million to cornerstone investors), only 800,000 are in the public offer. That is about 2% of the new shares and roughly half of one percent of the company. I come back to why that matters in the application section below.

Deluge reports three segments. The dollar amounts below are my own rounding of the percentages in the prospectus.

In plain terms, think of a lift company. Installing the lift is a big, one-off job. The servicing contract that follows is smaller each year, but it keeps coming for decades. Deluge is trying to be both.

Here is the part I think matters most. The maintenance-style income is only about 30% of revenue. The other two thirds comes from winning projects one at a time, mostly through invited tenders from main contractors. In FY2026 that project income fell 28.7%, or S$31.3 million, as several large infrastructure jobs passed their peak. So the recurring revenue story is real, but today it is the smaller part of the business. Geography is similarly concentrated: about 90.3% of FY2026 revenue came from Singapore and 9.6% from Malaysia.

AI isn’t a tech trend – it’s a full-blown, multi-trillion dollar race, and 10 companies are already pulling ahead.

These are the innovators driving real revenue, attracting institutional attention, and positioning for massive growth.

Get all 10 tickers in The 10 Best AI Stocks to Own in 2026, free today.

Download Now

These are the audited figures from the prospectus, in S$ million, for years ended 31 March.

Three things stand out to me.

Margins held up while revenue fell. Gross margin rose to 33.2% from 30.4%. The prospectus credits a richer Lifecycle Services mix, with more upgrade and alteration jobs, and a jump in the Products Distribution margin to 23.9% from 12.8%.

The headline profit includes minorities. Of the S$11.8 million net profit in FY2026, S$3.1 million belongs to non-controlling interests. Profit attributable to Deluge shareholders was S$8.7 million, and any per-share maths should start there, not at the headline.

Cash flow follows project timing. Operating cash flow was S$18.3 million in FY2026 against S$9.2 million in FY2025, even though profit fell. Cash arrives as projects hit payment milestones, so a quieter year can release cash that a busy year tied up. The offer material also points to gearing improving from 1.10 in FY2024 to 0.45 in FY2026.

Deluge's order book stood at S$433.04 million as at 16 September 2026, up from S$410.81 million at 31 March 2026. The company expects most of it to be delivered over the next four financial years. That is about 3.7 times FY2026 revenue, and press reports on the March figure put government work at about S$357 million of the S$410.8 million, or 87%.

Here is the arithmetic I would do next. Spread evenly over four years, S$433 million is about S$108 million a year. That is below the S$116.7 million Deluge booked in FY2026 and well below FY2025's S$139.8 million. It is a crude sum, because orders are not delivered evenly and new wins keep arriving, but it shows why winning the next tender matters more than the size of today's backlog.

In plain terms, the order book is a full diary, not a full wallet. It tells you the work is booked. It does not tell you the margin on that work or when the cash arrives. Customer concentration adds to the point: major customers made up 44.8% of FY2026 revenue, down from 52.4% in FY2025, and none of them is obliged to award Deluge more work.

The public offer closes on 14 October 2026 at 12 noon, but the channel you apply through usually sets an earlier cut-off. Moomoo's subscription window, for example, closes at 12 noon on 12 October 2026. The steps are simple.

Here is the part the promotional material does not dwell on. The public offer is only 800,000 shares, or S$480,000 at the offer price. If every applicant asked for the minimum 1,000 shares, 800 applicants would use up the whole tranche. A pool this small can be oversubscribed quickly, so a ballot or a small allotment is a real possibility. I would not plan around receiving any particular number of shares.

The bigger blocks go elsewhere. The 23.4 million cornerstone shares include Amova Asset Management Asia, Avanda Investment Management, HB Equity Partners and Whitefield Capital Management, along with several individuals. Cornerstone names show that institutions are interested. They say nothing about whether S$0.60 is cheap.

As for the money raised, net proceeds are about S$20.1 million. Roughly S$9.0 million is earmarked for partnerships, acquisitions, joint ventures and regional expansion, another S$9.0 million for tenders, larger contracts and working capital, and about S$2.1 million for facilities such as expanded prefabrication.

Receive bite-sized market updates and actionable stock ideas - so you stay informed without spending hours researching.

I did not find a pure fire protection contractor on the SGX to line Deluge up against. The closest construction-linked counter I have already analysed is Pan-United (SGX: P52), the concrete supplier. The businesses are different, but both depend on Singapore's infrastructure pipeline. You can read my full Pan-United VCBM analysis for the detail behind its column.

On these numbers, Deluge is priced at roughly half of Pan-United's earnings multiple, with a higher net margin. I would not read too much into that. The margin measures differ, so treat them as a rough guide. Deluge's FY2026 profit is also a down year, and Pan-United is more than 13 times larger by market value. Small, thinly traded newcomers often trade at a discount to larger peers, and part of the lower multiple may simply reflect that.

Personally, I find the business easier to like than the income statement. Fire protection is compulsory, systems need regular testing for as long as a building stands, and Deluge holds the top BCA grade for public sector work. Those are real strengths.

The price looks undemanding on first read. At S$0.60, the shares sit at about 10 times FY2026 profit attributable to shareholders (S$8.7 million, or about 6 cents a share on 145 million shares). On FY2025's S$15.1 million, the same price works out to about 5.8 times, by my arithmetic. The honest question is which year is the normal one. FY2025 was a peak for large infrastructure jobs, and FY2026 was a return to a quieter pace.

The dividend deserves a careful read. The board intends to recommend at least 25% of net profit attributable to shareholders for FY2027 and FY2028, but the prospectus says this is not legally binding and there is no fixed dividend policy. As an illustration only, 25% of FY2026's S$8.7 million is about S$2.2 million, or roughly 1.5 cents a share, which is about 2.5% of the S$0.60 price. If profit is higher or lower, so is the payout. Readers who want income-led names may find my guide to the best SGX dividend stocks in 2026 a better starting point.

One more detail I would not skip. Founder Vincent Cheo is expected to hold about 66.0% after listing. That is common in founder-led small caps, but it means minority shareholders rely on the board's capital allocation, and the S$9.0 million earmarked for acquisitions and regional expansion is the item I would watch most closely.

None of these is a dealbreaker on its own. What I would watch next is the first set of results after listing, whether the order book keeps growing from S$433 million, and how much of revenue comes from Lifecycle Services.

Deluge designs, installs and maintains fire detection and protection systems in Singapore and the region, and also distributes fire protection products. It has operated since 1983 and is Singapore's largest player by market share, at about 8.3% in 2025 according to Frost & Sullivan.

The offer price is S$0.60 per share, the same for the placement, the public offer and the cornerstone investors. At that price Deluge has about 145 million shares and a market value of about S$87 million.

The public offer closes on 14 October 2026 at 12 noon. Individual channels can close earlier, and Moomoo's subscription window closes at 12 noon on 12 October 2026, so check your own broker or bank.

Deluge shares are expected to list on the SGX Mainboard on 16 October 2026, with trading starting at 9.00am.

The minimum is 1,000 shares, which is S$600 at the offer price, payable in full when you apply. Larger applications go up in multiples of 100 shares.

I have not confirmed whether SRS is accepted for this offer. Check the application section of the prospectus on the SGX website, or ask your SRS bank or broker before the cut-off.

Check the current CPFIS-OA and CPFIS-SA approved securities list on the CPF Board website before assuming eligibility. A newly listed counter may not be on the list, and the list changes periodically.

The board intends to recommend dividends of at least 25% of net profit attributable to shareholders, excluding one-off items, for FY2027 and FY2028. The prospectus says this is not legally binding and there is no fixed dividend policy.

The order book was S$433.04 million as at 16 September 2026, up from S$410.81 million at 31 March 2026. The company expects it to be delivered mostly over the next four financial years.

They include Amova Asset Management Asia, Avanda Investment Management, HB Equity Partners and Whitefield Capital Management, plus several individuals. Together they subscribe for 23.4 million shares at S$0.60.

Deluge gives a Singapore investor something specific to study: a market leader in a compulsory service, with the top BCA grade, a S$433 million order book, a stronger balance sheet than a year ago and an intention to pay out at least a quarter of its profit.

The open question is which year is the real Deluge. FY2025's S$15.1 million profit came at a peak for infrastructure work, and FY2026's S$8.7 million came as that work returned to a normal pace. Two thirds of revenue still depends on winning the next tender, and with only 800,000 shares in the public offer, access may be limited.

If you are weighing an application, the cut-off times matter first: Moomoo closes at 12 noon on 12 October and the public offer closes at 12 noon on 14 October. After listing on 16 October, I would watch the first results, the order book and how the acquisition budget is used. For a repeatable way to test small caps like this one, my Pan-United VCBM analysis shows the method in action.

Join our community for more insights:
https://investkaki.com/community