GKE Corporation is proposing the placement of up to 88,123,510 new ordinary shares in the company at the placement price of 9.68 cents per share, raising about $8.18 million.
Assuming that the placement shares are fully subscribed, they will represent about 11.44% of the existing issued and paid-up share capital of the company of 770,476,490 ordinary shares.
The placement price represents a discount of about 9.87% to the volume weighted average price of 10.74 cents for each share, based on the trades done on the SGX on the full market day of Sept 22 until the trading shares were halted on Sept 23.
GKE Corporation intends to use the net proceeds from the proposed placement for its local and overseas business expansion in its logistics and warehousing business.
Excluding the estimated expenses including the listing and application fees of the placement shares, GKE is expected to raise about $8,180,356 in net proceeds.
Shares in GKE Corporation closed flat at 11 cents on Sept 25.
