Privatisation Yields 50x Return

It has been a while since I caught up with Aztech Global’s founder Michael Mun. I knew him back in 2005 when I initiated coverage on his company. It’s core tech manufacturing business was doing well up till 2007, but started to struggle after. Michael made a strategic decision to diversify into a couple of…

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Azure Capital Fund Management Singapore Private Debt Fund Singapore Hedge Funds Lyte Fund Terence Wong Blue Suit

Terence Wong, CFA

CEO and Executive Director
Azure Capital

Sep 24, 2021

It has been a while since I caught up with Aztech Global’s founder Michael Mun. I knew him back in 2005 when I initiated coverage on his company. It’s core tech manufacturing business was doing well up till 2007, but started to struggle after. Michael made a strategic decision to diversify into a couple of new businesses which turned sour in 2008 (importing sand and operating barges). Aztech even spent $4m in 2014 to buy Kay Lee Roast Meat, which some called the best char siew and roast duck stall in Singapore.

With dwindling interest in his stock, Michael delisted the company in 2017 at a market cap of $20 million. He divested the non-core businesses and concentrated on tech manufacturing and design. His efforts paid off with profits jumping more than 3x over 3 years. It rode on the fortunes of its top customer, which has grown rapidly to be one of the biggest names in technology globally.

In March this year, Aztech re-listed at a market cap of close to $1 billion – a 50-bagger in less than 4 years! It raised almost $300m, bringing on board big name cornerstones like Fidelity, Eastspring, EPF, JP Morgan and Lion Global.

What was deemed as a ‘fowl’ investment a few years back is certainly turning around, giving charred investors food for thought.

(Photo with Michael and his son Jeremy, who is Aztech’s ED)