BRC Asia to place up to 10m shares to raise S$13.7m

BRC Asia on Monday announced that it has proposed to place up to 10 million shares at S$1.42 apiece to raise a total sum of about S$13.7 million.

The placement price represents a discount of about 9.4 per cent to the volume-weighted average price of S$1.5680 for trades done on the Singapore Exchange on Jan 13, 2021.

BRC Asia said in its regulatory update that it decided to undertake the placement to "increase resources available to the company". The net proceeds of around S$13.7 million from the placement will further strengthen and supplement the group's financial position and capital base, it said.

It plans to use all the net proceeds to repay the group's outstanding bank borrowings.

Post-placement, the company's issued share capital will increase from about 233.3 million shares to 243.3 million shares, exulding treasury shares.

The placement shares represent approximately 4.29 per cent of the existing issued share capital of the company, and will represent 4.11 per cent of the enlarged issued share capital of the company.

The proposed placement is not underwritten, and will be undertaken by way of an exempt offering in Singapore.

The placement agent, CGS-CIMB Securities (Singapore) has agreed to procure subscriptions on a best efforts basis.

Shares of BRC Asia last traded on Jan 13 at S$1.55.