Compliance professional to become new Innopac controlling shareholder with proposed placement

INNOPAC Holdings' planned S$5 million stock placement could result in compliance professional Jack Lim becoming a new controlling shareholder of the investment holding company.

Mr Lim, who is described as a private investor who works at an international bank, will take 2.5 billion of the 5 billion placement shares at the offer price of 0.1 Singapore cent per share. That will result in him becoming the largest single shareholder of the company with a 26.42 per cent stake of Innopac's enlarged share capital.

Innopac shares closed at 0.2 Singapore cent on May 25, and trading had been halted from May 28 to the end of Wednesday. As at 9.07am on Thursday, shares in Innopac Holdings were trading flat at 0.2 Singapore cent apiece.

Innopac did not disclose who the other placees were, but said that they were independently procured by the placement agent, and did not hold any shares in the company as at May 30. They are also not directors or substantial shareholders of the firm, and are not related to each other in any way, other than being co-investors in the company.

Innopac will use S$2.25 million, or 47.4 per cent, of the proceeds to support new business investments and acquisitions. About S$500,000 or 10.5 per cent of the net proceeds will go towards developing existing investment business, while the remainder will be used for working capital and for placement expenses.

Innopac Holdings will also be seeking approval from shareholders of the company for the proposed placement, as well as the proposed transfer of controlling interest at an extraordinary general meeting to be convened.