Conglomerate Hong Leong Asia (HLA) is offering 50 million new ordinary shares at a placement price of $2.90, according to a bourse filing on April 29.
The placement price represents a discount of approximately 5.76% to the volume weighted average price of $3.0771 for trades done on the Singapore stock exchange (SGX-ST) on April 27, being the last full market day on which HLA’s shares were traded prior to the trading halt called by the company before trading hours on 28 April 2026 and up to the time of execution of the placement agreement with CGS International Securities.
Approximately $113.8 million, representing 80% of net proceeds of $142.3 million, will go towards general corporate activities including but not limited to investments, acquisitions, business expansion and repayment of bank borrowings. The remaining 20%, or $28.5 million, will be used to meet the general working capital requirements of the business.
HLA shares that net proceeds, pending deployment, may be deposited with banks or financial institutions, invested in short-term money market instruments or marketable securities, and/or used for any other purpose on a short-term basis.
After completion of the placement, the total number of issued shares for HLA will increase to more than 798 million. On a pro-forma basis where it is assumed that the placement was completed on Dec 31, 2025, net tangible asset per share will increase to $1.4134 from $1.3177. For earnings per share, if the placement was completed on Jan 1, 2025, EPS for FY2025 will be diluted from 15.08 cents to 14.14 cents.
The new shares are issued in accordance with the general share issue mandate granted by shareholders at HLA’s AGM on April 24. The company may issue up to more than 149.6 million new shares
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The placement is not underwritten and is scheduled to be completed not later than May 11.
As at around 10.10 am on April 29, shares in Hong Leong are trading at $2.95, down 11 cents or 3.6%.
