Beng Kuang to raise S$3.35m from proposed share placement

MAINBOARD-LISTED Beng Kuang Marine is set to raise S$3.35 million via a share placement exercise, with its chief executive taking up a portion, the company announced in a Monday bourse filing.

Beng Kuang will issue 37.2 million new shares at S$0.09 per share, priced at a 9 per cent discount to its volume-weighted average price of S$0.0989 per share on Oct 14.

Its chief executive, Yong Jiunn Run, has provided an undertaking to the company and to the placement agent, SAC Capital, to subscribe for up to 5.6 million placement shares at the same price. This represents about about 3.46 per cent of the existing share capital.

Assuming all the 37.2 million shares are placed out, Yong will own 2.81 per cent of the enlarged share capital. The identities of the other subscribers was not stated in the filing.

Beng Kuang will use the proceeds for operational needs and to reduce its reliance on debt. It has four key business segments: infrastructure engineering, corrosion prevention, supply and distribution of marine and industrial hardware, and shipping. The company operates two livestock vessels and two Indonesian-flagged assist tugs.

Yong said: "Even as we prioritise costs cutting and deleveraging initiatives, we continue to focus our efforts and resources on high potential business segments to create new growth catalysts."

Shares of Beng Kuang last traded at S$0.099, before a trading halt.