MetaOptics looks to SGX Catalist debut for path to profitability

[SINGAPORE] When Mark Thng first launched MetaOptics Technologies’ operations in June 2021, it was out of a tiny office in Roxy Square. The rent was just S$300 a month, but the space was so small it could barely fit him and deputy chief executive officer Aloysius Chua.

Thng, who is now CEO and executive chairman of the semiconductor optics startup he founded, told The Business Times in an interview that those early days were “very difficult”.

But despite those humble beginnings, MetaOptics quickly carved out a niche for itself.

Although it is a modest player from a “small red dot”, the company has what the world needs, said Thng. Those are metalenses – and the ability to manufacture them at scale, which has become its defining advantage.

Metalenses are ultra-thin optical devices with a wide range of applications, from smartphones and bio-imaging to wearable displays for augmented reality (AR) and virtual reality (VR).

The company’s name reflects its product focus. Thng explained that “MetaOptics” was chosen as a generic yet representative term, and the brand identity was strengthened with a distinctive logo inspired by the structure of a metalens, which is composed of numerous cylinders of varying diameters.

Now four years old, MetaOptics has not yet turned profitable. Yet, it is set to debut on the Singapore Exchange’s (SGX) Catalist board. 

“We have certain capabilities that the stock exchange and (others) are looking for,” Thng said. He believes MetaOptics is the only company in Singapore currently developing metalenses.

The startup aims to raise S$6 million in gross proceeds from its initial public offering (IPO), in which 30 million placement shares will be issued at S$0.20 apiece. The offer document was registered on Monday (Sep 1), with trading expected to begin on Sep 9. 

Once listed, the company will have more than 235 million outstanding shares, translating to a market capitalisation of about S$47.2 million. Zico Capital is the sponsor, issue manager and placement agent for the IPO.

MetaOptics is based in the JTC LaunchPad, where it benefits from support from government agencies such as the Agency for Science, Technology and Research – which owns a 6 per cent stake in the company – and Enterprise Singapore. 

It also operates with a lean team: just two metalens designers, one system designer, a software engineer, chief financial officer Chu Wee Liat, deputy CEO Chua, and Thng himself.

But the startup has strong industry backing. Its shareholders include MMI, a Singapore-based hard-drive component producer, and Metasurface Technologies, a precision-engineering company listed in Hong Kong.

Path to profitability

MetaOptics hopes its SGX debut will turn its fortunes around. The loss-making company posted a net loss of S$2.3 million on revenue of S$79,440 for FY2024. For the first quarter of FY2025, its net loss stood at S$706,391.

Thng said it may take two more years for MetaOptics to become profitable, though the IPO would help to generate profits indirectly.

“We hope… the listing will give us a lot more leverage to raise funds,” he said, adding that being listed will enable the company to collaborate with more partners, as well as strengthen its governance and operational oversight.

The decision to go public was driven primarily by credibility and resource considerations, he said. He and Chua had considered an IPO from the outset, first exploring a listing on the Nasdaq in the United States. They ultimately chose Singapore to remain close to their home base, networks and support system.

MetaOptics intends to use the IPO proceeds mainly for product development, research and development, as well as strategic partnerships. Around 20 to 30 per cent of the funds will go towards overseas expansion, Thng said. While he declined to specify the locations, he confirmed that the focus will be on the Asia-Pacific.

However, the local investment environment remains a major challenge for startups like MetaOptics. Without asset managers here willing to support startups, Thng views opportunities for sponsors and investors as limited, and this could ultimately affect the broader equities market.

“The local investment (scene) is very disappointing, and it discourages a lot of entrepreneurs,” he said.

“Miniaturisation is our strength”

MetaOptics began with the idea of developing a customised direct laser writer, a machine used in making meta optics products. Thng believed this would give companies a cost-effective way to enter the industry, by making advanced technology more financially accessible.

In its second year, MetaOptics pivoted to producing metalenses through a chip-making process. The maturity of this method allowed it to manufacture higher-quality products more efficiently. It produced a fisheye lens with a 4 mm diameter and wide-angle functionality, as well as other lenses ranging from 0.5 mm to about 1 mm in diameter.

“Miniaturisation is our strength,” Thng said, adding that a metalens is a form of semiconductor optics, allowing miniaturisation beyond what traditional, polymer-based lenses can achieve.

Unlike polymers, which degrade over time and are heat-sensitive, semiconductor optics are more durable and heat-resistant, making them suitable for a wide range of devices.

With exponential growth expected in AR and VR over the next two years, Thng said MetaOptics is positioning its metalenses for integration into these devices, shaping the company’s market profile.