If all 53 million shares are placed out to public shareholders, the proportion will increase to 16.9%. The Lim family, led by executive chairman Lim Yong Guan, collectively own around 85% of the shares now.
At 83.5 cents, the placement price is a slight discount of 3.1% to the VWAP of 86.2 cents as of April 15.
The company intends to utilise 100% of the net proceeds of some $43.4 million to support the growth of its pawnbroking portfolio and purchases of retail inventory.
CGS International Securities Singapore, DBS Bank and Oversea-Chinese Banking Corporation have been hired to do this placement, which is not underwritten.
See also: FJ Benjamin to raise $302,400 by placing out new shares to Richard Eu and Dr Rosslyn Leong
DBS Group Research, on April 15, issued a non-rated report on MoneyMax suggesting that this counter has a fair value of $1.13.
