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Blumont Group to raise net estimated S$1.67 million from share placement with private individual investor

BLUMONT Group will place out 100 million new ordinary shares to a "private individual investor" at S$0.01705 apiece, it said on Tuesday. This placement will raise an estimated S$1.67 million in net proceeds, after deducting expenses, according to Blumont.

The investor, Vigneswaran T Subramaniam, has not had any business dealings with Blumont apart from this share placement, and does not hold any shares in it, Blumont said on Tuesday.

The group said that the placement will "strengthen (Blumont's) balance sheet, and will provide the company with funds for general working capital".

The placement price of S$0.01705 represents a discount of about 9.8 per cent to the volume weighted average price of S$0.0189 per share for trades done on Tuesday - the last market day before the deal was signed.

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On completion of the deal, the placement shares will represent about 3.7 per cent of Blumont's enlarged issued and paid-up share capital.

The placement is conditional on approval-in-principal being granted by the Singapore Exchange for the listing and quotation of the placement shares within three months from the date of the agreement, among other things.

Blumont's counter rose 0.1 of a Singapore cent - or 5.3 per cent - in trading on Tuesday to two Singapore cents before the placement announcement was made.