Generator maker VibroPower proposes S$1.3m placement

VIBROPOWER Corporation, which manufactures power generator sets, is proposing a private placement of up to 9.5 million shares to two subscribers for an aggregate cash consideration of S$1.3 million, it said in a bourse filing on Tuesday.

The mainboard-listed company on Tuesday entered into separate subscription agreements with father and son duo Wong Kim Siong and Wong Chong Heng, who agreed to subscribe for seven million shares and 2.5 million shares respectively at 13.2 Singapore cents per share.

This represents a discount of approximately 10 per cent to the volume-weighted average price per share for trades done on the Singapore Exchange on Monday. The issue price was commercially agreed upon after arm's length negotiations, taking into account VibroPower's historical trading performance, prevailing market conditions, and the company's future prospects, the company said.

Following the proposed placement, Mr Wong Kim Siong will have an 11 per cent stake in the company's enlarged share capital, while Mr Wong Chong Heng will hold a 3.9 per cent stake. As at Tuesday, the Wongs do not hold any shares in VibroPower, the company said.

VibroPower added that a company owned by Mr Wong Chong Heng and the group are trading partners. It also believes that the company can leverage on the Wongs' network to explore more investment or business opportunities in Malaysia.

VibroPower said it will use the proceeds from the proposed placement as working capital or to finance any acquisition or investment.

Shares of VibroPower were trading flat at 14.4 Singapore cents as at 9.20am on Tuesday, after the announcement.