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PSL to place new shares with three Malindo Exim directors to raise S$2.9m

SINGAPORE-LISTED engineering services provider PSL Holdings has entered into a private subscription agreement with three individuals to raise net proceeds of S$2.9 million.

PSL said on Thursday it would issue 7.7 million new shares, which represent 20 per cent of its existing total number of issued and paid-up ordinary shares, at S$0.3825 each to the three investors who are directors of Malaysia's Malindo Exim Sdn Bhd.

At S$0.3825, the issue price represents a discount of 10 per cent to the volume-weighted average price of S$0.425 for trades done on its company's shares on Sept 21.

PSL intends to use most of the money raised to fund its growth and expansion as well as for working capital purposes.

It said the placement would decrease the net tangible asset per share of the group to S$1.11 from S$1.34, and the net tangible asset per share of the company to S$0.86 from S$1.03.

Shares of PSL ended almost 25 per cent up on Wednesday at S$0.48 each.