Intraco to raise S$4.5m from share placement for expansion and MHC Digital Group investment
MAINBOARD-LISTED trading company Intraco on Friday (Dec 24) said it will issue up to 10 million new ordinary shares at 45 Singapore cents each, to raise net proceeds of about S$4.5 million.
The money will be used to pursue new business opportunities - including facilitating the company's proposed investment in MHC Digital Group - as well as to strengthen its financial and cash position. It will also be used to fund the growth of its existing business.
The price represents a discount of approximately 3.2 per cent to the weighted average price per share of S$0.465 for trades done on Wednesday (Dec 22). There is no placement agent appointed.
Subscribers in the placement, including the chairman of Sin Heng Heavy Machinery Teo Yi-Dar and CEO of Boustead Wong Fong Fui, were introduced to the company through its directors.
Except for Harvest Advisors Investment Management, each of the subscribers is acquiring the shares as principal and is not acting as a trustee for or a nominee of a third party.
Established in Singapore in 2018, Harvest Advisors Investment Management is the investment manager of Harvest Private Wealth Thematic Fund SPC, a segregated portfolio company registered under the laws of the Cayman Islands. Harvest Group is a fund management company overseeing more than US$200 billion, with clients including pension funds, financial institutions, sovereign wealth funds, family offices and ultra-high net worth individuals, according to its website.
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The placement shares in total represent some 9.73 per cent of Intraco's existing share capital, and will represent about 8.86 per cent of its enlarged share capital.
Intraco called for a trading halt on Thursday, before the market opened. The counter closed at S$0.47 on Wednesday.
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