Swee Hong to raise up to S$8m from placement of new shares, warrants

ENGINEERING group Swee Hong said it has entered into a term sheet to place 300 million new shares at S$0.01 a share, and 500 million free unlisted detachable new warrants to subscribe for one new share at S$0.01 per warrant share, to Readymade Steel Singapore.

Gross proceeds will be S$3 million from the issue of new shares, and up to another S$5 million from the warrant shares if all are exercised.

Readymade Steel is an investment holding company ultimately owned by Kridhan Infra Limited, a company incorporated and publicly listed in India. Readymade's subsidiary, KH Foges Pte Ltd, is a sub-contractor of Swee Hong.

Swee Hong, which is facing financial problems, is currently suspended from trading and is restructuring its debt.