JustCo’s (SGX:JCO
) stabilisation manager, DBS Bank, has announced that it has purchased a total of 5.319 million shares in the company to date and has ceased price stabilisation action as of today’s closing.
“As the total number of shares which had been over-allotted in connection with the offering has been fully covered by the purchases made under the price stabilising action, we will not be exercising the over-allotment option granted by Sing Long Investments to the joint bookrunners and underwriters,” the bank says.
JustCo’s IPO, dated May 22, was priced at 94 cents and saw an overall subscription rate of 3.4 times. Together with $69.8 million in secured cornerstone commitments, the offering raised about $100 million.
Some of the cornerstone investors include JP Morgan Asset Management, Amova Asset Management Asia, Fullerton Fund Management and Avanda Investment Management — four fund managers that have been appointed under the Monetary Authority of Singapore’s Equity Market Development Programme.
JustCo intends to use the net proceeds for strategic investments, capital expenditures, general corporate purposes and working capital to support expansion plans in existing and new markets.
Shares of JustCo closed 8 cents lower, or 10.5% down at 68.5 cents on June 2. Based on today’s closing, share price has witnessed a decline of 27.1% from its IPO price of 94 cents.
