Aspen, eyeing promotion to mainboard, completes share placement

CATALIST-LISTED Aspen Holdings has completed its placement of 100 million new ordinary shares, in a further step in its bid to transfer to the Singapore Exchange's mainboard, it announced on Wednesday after the market closed.

The placement was fully subscribed at 23.8 Singapore cents per share, raising S$23.8 million.

The aim was to meet the minimum shareholding spread requirements for promotion to the mainboard, and strengthen its financial position.

The funds raised will be used for capital expenditures such as the construction of the first phase of Aspen's glove-manufacturing facility, as well as general working capital.

The group intends to complete the glove manufacturing facility by the first quarter of 2021, and to start production by the subsequent quarter, producing 1.6 to 1.8 billion gloves annually.

The placement takes Aspen's total issued share capital to about 1.08 billion shares, with the placement shares representing 9.23 per cent of this.

The group's businesses include property development, food and beverage services and healthcare in the form of its glove manufacturing.

Aspen shares closed up 4.5 Singapore cents or 20.46 per cent at 26.5 Singapore cents on Wednesday before the news.