VALLIANZ Holdings saw its shares surge in early Monday trade following news that the offshore marine-related group has roped in CRRC Corp as a major investor.
Vallianz shares were trading around S$0.043 each at 9.04am, up 4.88 per cent, or 0.2 Singapore cent. About 10 million shares changed hands, making Vallianz the most actively trade stock on the Singapore Exchange.
Earlier, Vallianz said it has agreed to place 550 million new shares at S$0.043 each to two units of China's state-owned CRRC, which is said to be the world's largest supplier of rail transit equipment with the most complete product lines and leading technologies.
At S$0.043 each, the placement price is at a 4.6 per cent premium to the weighted average price of S$0.041 for trades done on Jan 14, the last full trading day prior to trading halt and signing of the subscription agreement.
After the placement, CRRC will become a major shareholder of Vallianz, with a 13.9 per cent stake.
Ling Yong Wah, CEO of Vallianz, has said the group views CRRC as a strategic technology partner which can enhance its vessel operations, while CRRC is hoping Vallianz can help it realise its plans to expand into the offshore and marine sector.