Capital World to raise S$18m by issuing shares to 2 private investors
PROPERTY firm Capital World, which has recently struggled to repay loans, is looking to raise some S$18 million by issuing new ordinary shares to two private investors.
The Catalist-listed firm said on Wednesday it has entered into a legally-binding term sheet with Yuan Zhiwei and Chng Chor Tong to issue about 916 million new shares at S$0.020 per share. The issue price represents a 13.04 per cent discount to the volume-weighted average price of S$0.023, based on trades done on July 5.
According to the exchange filing, Mr Yuan is a Singapore Permanent Resident and is currently a director and shareholder of Shen Zhen South Honki Investment and Guizhou Honki Real Estate Development, which deal in property development and property investment.
Mr Chng is a Singaporean investor and is currently a director of Zhuang Sheng Singapore Holdings. He does fundraising and corporate consultancy.
The proposed subscription, if approved by shareholders, will see Mr Yuan take a 28.11 per cent stake in the company's enlarged share capital, making him a controlling shareholder.
Mr Chng, on the other hand, will hold 4.84 per cent of the company's enlarged share capital.
Capital World said the proceeds will go chiefly towards its Capital City Project and partial repayment of existing loans and borrowings. The remainder will be used as working capital.
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