ASL Marine Holdings is seeking to raise up to $7 million through the proposing the placement of 41,104,000 new ordinary shares at 17.03 cents per placement share.
The placement shares represent about 4.16% of the existing issued and paid-up share capital of the company that has 987,928,976 shares in issue.
The company has decided to undertake the proposed placement for business expansion and to broaden the company’s shareholder base which it hopes will improve the trading liquidity of its shares.
The use of gross proceeds from the placement shares, which is about $6.7 million, will be used to fund capital expenditure for business expansion.
The financial effects of the placement shares on the group’s share capital, net tangible assets and earnings per share are as follows.
Net earnings attributable to shareholders will decrease to $14.3 million from $14.6 million, earnings per share will decrease to 1.39 cents from 1.48 cents per share, and weighted average number of shares will increase to 1,029,032,976 from 987,928,976 previously.
SAC Capital is the placement agent, and Maybank Securities is the sub-placement agent.
Shares in ASL Marine closed flat at 18 cents on Oct 6.
