GKE Corporation has completed the share placement of 88.12 million new ordinary shares for 9.68 cents per share, raising gross proceeds of $8.53 million.
The share placement of 88.12 million new shares represents about 11.44% of the existing issued share capital of 770.48 million shares and will represent approximately 10.26% of the enlarged issued share capital of 858.60 million shares, excluding 24.22 million treasury shares.
The share placement was fully subscribed and attracted interest from institutional investors including ICH Capital, Asdew Acquisitions, and Astral Value Fund VCC, as well as accredited investors.
GKE Corporation says that it will use the proceeds for its business expansion plans locally and internationally, focusing on its core warehousing and logistics segment.
One of the local expansions involve the planned asset enhancement at 7 Kwong Min Road, owned and managed by its wholly-owned subsidiary GKE Marquis.
This is a two-storey chemical warehouse and office property acquired in December 2015, which the group says has been earnings accretive and broadened its warehousing and logistics competencies, in the area of specialised marine logistics and dangerous goods handling and storage.
Shares in GKE Corporation closed 0.3 cents lower or 2.857% down at 10.2 cents on Oct 3.
