Capital-raising focus: Reclaims Global, iWow, Vividthree
Financial services and industrials book the most net institutional outflow from Oct 10 to 16, while telecommunications and healthcare book the most net institutional inflow
[SINGAPORE] Over the five trading sessions from Oct 10 to 16, institutions were net sellers of Singapore stocks, with the net institutional outflow of S$167 million partially reversing the S$250 million net institutional inflow during the preceding week.
Institutional flows
Over the five trading sessions to Oct 16, the stocks that had the highest net institutional outflow included DBS , Seatrium , CapitaLand Investment , UOB, Yangzijiang Shipbuilding , Singapore Technologies Engineering , Singapore Exchange (SGX), Yangzijiang Financial Holding , Hongkong Land Holdings and UMS Integration .
Meanwhile, Singtel , OCBC , Keppel , Venture Corporation , UOL Group, Wilmar International , Thai Beverage , Suntec Reit , Riverstone Holdings and Frasers Centrepoint Trust led the net institutional inflow over the five sessions.
Financial services and industrials booked the most net institutional outflow on the week, while telecommunications and healthcare booked the most net institutional inflow.
Share buybacks
For the five sessions till Oct 16, 19 primary-listed companies conducted buybacks with a total consideration of S$39.3 million. UOB led the consideration tally, buying back 500,000 of its shares at an average price of S$34.91.
Between Oct 10 and 16, Stoneweg Europe Stapled Trust (Sert) bought back 1,023,200 units at an average price of 1.5 euros (S$2.27) apiece. The manager of Sert noted that its unit buybacks are a flexible, cost-effective capital management strategy aimed at enhancing returns on equity and net asset value per unit.
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Hongkong Land bought back 893,100 shares at an average price of US$6.36 apiece between Oct 10 and 16.
Director transactions
Over the five trading sessions, more than 60 director interests and substantial shareholdings were filed.
Across close to 30 primary-listed stocks, directors or CEOs reported three acquisitions and two disposals, while substantial shareholders recorded four acquisitions and five disposals.
NTT DC Reit
On Oct 13, the total interests of JP Morgan Chase in NTT DC Reit crossed back above the substantial shareholder threshold.
A filing on Oct 15 detailed that its interests consist of 53,304,670 units, with 24,484,770 units (2.38 per cent) in direct interest and 28,819,900 units (2.7 per cent) in deemed interest.
JP Morgan Chase is the ultimate holding company of JP Morgan and its affiliates, and its total interest crossed below 5 per cent on Jul 15.
Digital Core Reit
On Oct 10, Cohen & Steers Capital Management purchased 2,189,800 units in Digital Core Real Estate Investment Trust (Reit) which increased its deemed interest in the Reit from 8.92 per cent to 9.09 per cent.
The average price paid was US$0.4625 per unit. Its deemed interest has oscillated around the 9 per cent threshold since initially crossing above in January 2025.
This follows Cohen & Steers Capital Management’s increase in its deemed interest in Digital Core Reit to above the 5 per cent substantial shareholder threshold on Feb 1.
It then went above the 6 per cent threshold on Feb 14. Based on the filings, that interest oscillated around 7 per cent between late February and early July.
Reclaims Global
Reclaims Global signed a placement agreement with SAC Capital on Oct 14.
Maybank Securities was appointed as sub-placement agent.
The company has proposed a placement of up to 15,384,700 shares at S$0.39 each, raising about S$5.75 million after fees.
The price reflects an 8.81 per cent discount to the volume weighted average price (VWAP) of S$0.4277 on Oct 9.
The placement shares represent about 11.7 per cent of existing capital and 10.5 per cent of enlarged capital.
The company has decided to undertake the proposed placement to strengthen its general working capital position and to pursue business expansion initiatives, including tendering for higher value contracts and projects aligned with the Singapore’s construction macro trends.
This includes targeting new business opportunities related to excavation services, demolition services, building construction and/or acquisitions of related business entities
Reclaims Global, listed on Catalist, specialises in recycling non-metal waste and providing demolition and transport services. It raised S$4.6 million at its March 2019 listing with an offer price of S$0.23.
This means the newly announced placement plans to raise more funds than its initial public offering.
iWow Technology
On Oct 17, iWow Technology completed its subscription agreement of 15 million shares to Mehta Vimesh Piyush for a consideration of S$3 million an issue price of S$0.20 per subscription share.
iWow Technology maintained that the placement would strengthen its capital base by maintaining financial readiness and agility for potential merger and acquisition opportunities.
It added that the funds would also support forward-looking contractual obligations/opportunities for its Age-Tech segment, without undertaking a broader market offering.
Vividthree Holdings
On Oct 15, Vividthree Holdings received SGX-ST’s listing and quotation notice for 137.4 million placement shares to Hildrics Asia Growth Fund VCC, subject to shareholder approval and compliance with listing rules.
The next step is for Vividthree Holdings to seek approval at an extraordinary general meeting. This is because the subscription agreement signed on Sep 8 was with an existing substantial shareholder and involved an issue price exceeding the 10 per cent discount limit to VWAP.
The group also noted on Sep 8 that if completed, the placement will result in a transfer of controlling interest of the company, with the subscriber set to hold approximately 29 per cent of the enlarged issued and paid-up share capital of the company.
It said that the placement will allow it to strengthen its financial position and improve its cash flow to support the group’s general working capital requirements, which include existing and new project opportunities. It also intends to leverage its success in the meetings, incentives, conferences, and exhibitions sector and digital family entertainment to drive growth in the coming years.
Key initiatives include developing proprietary immersive experiences using animation, extended reality and artificial intelligence for global markets, expanding into family entertainment and edutainment, and addressing rising demand for out-of-home experiences. Additionally, it is investing in sustainable digital solutions to reduce environmental impact while delivering engaging content.
Issuing shares via placement: A step-by-step overview
Companies, Reits and business trust managers (issuers) may seek to issue shares to investors in exchange for funds to improve their balance sheets or facilitate business growth.
The issuer may choose to appoint a placement agent to manage the placement or place shares directly with its own investors. The requirements for issuers listed on the mainboard and Catalist are set out in Chapter 8 on changes in capital in their respective rulebooks.
Issuers on both the mainboard and Catalist are required to make a prompt announcement when deciding to place shares or units.
The initial proposal announcement must state the terms and purpose of the issue, name the placement agent if one is appointed, the amount to be raised and how the proceeds will be used, shown as percentage allocations or ranges if not finalised.
If there is no placement agent or if the agent is subject to restrictions and directions imposed by the issuer, the issuer must also disclose the identities of the placees, the number of shares allocated to each, how they were identified and any restrictions imposed.
Note that pricing must not exceed a 10 per cent discount to the weighted average price on the day the agreement is signed, with similar limits for warrants and convertibles, unless specific shareholder (or unitholder) approval is obtained. Where approval is sought, the circular must include the required details and the basis for the discount.
Placements cannot be made to directors, substantial shareholders and their immediate family members as well as certain related parties unless approved by shareholders.
In addition, issuers may borrow shares from substantial shareholders to facilitate the issue provided no financial benefit is given.
Once the private placement agreement outlining the terms and conditions has been signed, the issuer must obtain SGX approval by securing a listing and quotation notice for the placement shares.
After that, the conditions in the agreement must be satisfied and once all conditions are met or waived, the completion date is confirmed, the transactions take place, and the shares or units are listed and quoted for trading.
The process also provides the means for the issuers to update their investors with the rationale of the placement, the use of proceeds, and the financial effects of the placement.
Shareholders, unitholders and investors should also take note that proposed placements are subject to conditions and may not proceed to completion.
From an investor’s perspective, ICH Capital managing director Vincent Toe said that well-structured placements do more than raise funds – they attract strategic investors, enhance liquidity, strengthen a company’s capital base and may signal market confidence in its growth trajectory.
The writer is the market strategist at Singapore Exchange (SGX). To read SGX’s market research reports, visit sgx.com/research
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