King Wan Corporation has entered into a subscription agreement with three subscribers for 70,000,000 new ordinary shares in the capital of the company at 5 cents per share.
The company is set to raise $3,500,000 from the placement share exercise.
The issue price of 5 cents per placement share represents a discount of approximately 3.85% to the volume weighted average price of 5.2 cents per share for the trades done on the SGX-ST on Dec 16.
The three subscribers were identified directly through its business contacts, network and connections and not through any third-party intermediary.
King Wan says that the placement shares are placed to the subscribers to raise funds to strengthen its financial position and such funds will provide it with greater flexibility to capitalize on business opportunities.
The proceeds will largely be allocated for funding the execution of ongoing mechanical and electrical engineering services projects as well as new project opportunities.
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Net tangible asset per share and earnings per share are expected to decrease to 9.45 cents and 0.44 cents following the placement.
Shares in King Wan closed flat at 5.2 cents on Deec 16.
