Contractor Tiong Seng Holdings is raising $2 million by placing 20 million shares at 10 cents each to its longtime business partner Continental Steel.
At 10 cents, the placement price is a premium of 19.33% to Tiong Seng's last traded price of 8.38 cents on Dec 27.
Upon completion of the placement, Continental Steel, in operation since 1982, will hold a 4.34% stake in Tiong Seng.
Tiong Seng says it will use all the net proceeds from the placement for working capital.
In its announcement on Dec 30, Tiong Seng says that placement is a "strategic investment" to "build on the established and robust working relationship between itself and Continental Steel.
"By combining our complementary expertise, we are well-positioned to tackle some of the most critical challenges in urban infrastructure and environmental sustainability,” says Tiong Seng's executive director Pek Zhi Kai.
See also: Salt Investments looking for alternative funding after two investors missed placement deadline
"This investment represents more than a financial transaction; it is a commitment to advancing sustainable building practices and driving technological innovation in Singapore's built environment sector," says Ronnie Lim, Continental Steel's executive director.
"We believe that by pooling our resources and expertise, we can create more resilient, efficient, and environmentally responsible infrastructure solutions that will benefit our industry and community," adds Lim.
Tiong Seng was placed on the Singapore Exchange Regulation’s watch-list in December 2023. Shares in Tiong Seng closed flat at 8.4 cents on Dec 30.
