You are here

AGV Group proposes 5-for-1 rights issue to 'enhance cash position'

CATALIST-LISTED AGV Group has proposed to undertake a renounceable non-underwritten rights issue to raise net proceeds of between S$3.6 million and S$19.3 million.

This will enhance its cash position and financial flexibility, it said on Friday. In January, the group's independent auditor Mazars LLP had raised doubts about the group's ability to continue as a going concern.

The group, which provides hot dip galvanising services to steel fabricators, plans to issue up to 929.7 million new rights shares at S$0.025 apiece, on the basis of five rights shares for every one share held by shareholders. 

The issue price is at a discount of around 7.4 per cent to AGV's last traded price of S$0.027 per share on Friday. The issue price is also at a discount of around 1.2 per cent to the theoretical ex-rights price of S$0.0253 per share.

Currently, AGV has an existing issued and paid-up share capital comprising just over 185.9 million shares. Certain shareholders including non-executive director and chairman Damien Chua Wei Kee have given their irrevocable undertakings to subscribe for the rights issue. 

Your feedback is important to us

Tell us what you think. Email us at

The rights issue is subject to shareholders' approval at an extraordinary general meeting.

As at Sept 30 last year, AGV had net current liabilities of S$2.9 million. It also reported a net loss of S$8.4 million and operating cash outflows of S$5.8 million for the financial year then ended.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to