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SinoCloud to raise S$4.82m through private placement

CATALIST-LISTED SinoCloud Group is undertaking a private placement to raise S$4.82 million in gross proceeds to finance investments in data centre projects as well as for working capital.

The firm, which provides IT and professional services to banks in China and Singapore, agreed to place 1.38 billion new ordinary shares at 0.35 Singapore cent each, to three individuals - Huang Min (500 million shares), Cou Tzi Meng (500 million shares), Chui Keung Wah, Alexander (224 million shares) - and Alternus Capital Holdings (153 million shares). This represents a premium of 75 per cent to the volume weighted average price of 0.20 Singapore cent the firm's shares traded on Oct 15.

The placement shares will represent about 12.6 per cent of the enlarged issued share capital of the firm.

The proposed placement will enable the company and the group to further supplement and augment the working capital available to the group in view of the current uncertain and volatile economic conditions it faces, SinoCloud said in the exchange filing.