MoneyMax Financial Services, which is seeking to transfer its listing to the Mainboard, plans to place out 53 million new shares at 83.5 cents each so as broaden its shareholder base, and to raise gross proceeds of some $44.23 million.
Under market rules, at least 15% of the share base is to be in public hands. As of March 16, this proportion was 11.93%.
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: Innotek raises $16 mil via placement from investors including Amova, Asdew, Avanda
DBS Group Research, on April 16, issued a non-rated report on MoneyMax suggesting that this counter has a fair value of $1.13.
