Ramba Energy raising S$15m via placement
Singapore
TO finance the exploration and production activities of its Indonesian oil and gas business, Singapore-listed Ramba Energy is placing out 37.5 million new ordinary shares at S$0.40 each to raise nearly S$15 million, the company announced on Monday.
Following approval obtained at the company's annual general meeting on April 28, 2014, Ramba Energy on Sunday entered into a share-purchase agreement with its placees, including Zymmetry Investments.
Owned by Singapore-listed Yangzijiang Shipbuilding's executive chairman Ren Yuanlin and its former director Toe Teow Heng, Zymmetry Investments will, upon SGX's approval of the share placement, receive a total of 12.5 million shares, or 3.2 per cent of the company's share capital after placement, for an aggregate price of S$5 million.
Other placees include Lim Han Feng, son of Singaporean property tycoon Lim Chap Huat, who will own 7.5 million shares, for an aggregate consideration of S$3 million.
According to Ramba, "the placees were introduced to the company by business associates of the group as strategic investors who believe in the growth and prospects of the group".
Priced at S$0.40 each, the shares will be issued at a discount of 8.8 per cent to the price trading on Oct 17, 2014, the last full market day prior to the signing of the placement agreement.
In relation to the placement, Ramba has incurred an estimated cost of S$50,000.
Representing approximately 10.9 per cent of Ramba's issued and paid-up share capital, Ramba intends to use around S$12.45 million, or 83.3 per cent of the placement, for its oil and gas business, and the remaining S$2.5 million for the group's general working capital.
The company, which ventured into the energy sector in 2008, currently owns stakes in three oil and gas assets in its core market Indonesia - two in Sumatra and one in West Java, and plans to continue acquiring and developing more onshore assets in the country.
Prior to this announcement, no shares had been issued by Ramba, pursuant to the share issue mandate. The completion of this placement will take place within three business days after obtaining SGX's approval.
On Monday, pending the release of the announcement, Ramba had called for a trading halt. The company's shares will resume trading on Tuesday morning.
