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IEV to raise S$3.8m by issuing new shares at S$0.05 apiece

CATALIST-LISTED IEV Holdings, which provides engineering solutions to the oil and gas sector, plans to raise gross proceeds of S$3.8 million by issuing 76 million new shares to three parties at S$0.05 apiece, it said on Monday.

It will use S$3 million of the proceeds to fund the renovation and refurbishment of the group's existing postpartum centres in Singapore and Malaysia, after shareholders approved IEV's diversification into the healthcare, postpartum care and wellness business in October. The remainder of the net proceeds will be spent on working capital and marketing expenses.

On Monday, IEV entered into three separate share subscription agreements with Willy Chan Foo Weng, Ng Lee Eng and The Rain Maker Mgmt (TRM) Sdn Bhd. The subscription shares represent approximately 15.58 per cent of the enlarged share capital of IEV.

The issue price of S$0.05 per subscription share represents a discount of approximately 1.19 per cent to the volume-weighted average price of S$0.0506 per share for trades done on Dec 20, the last full market day on which the shares were traded before IEV called for a trading halt.

Dato Chan and TRM were introduced to the company by Dato Low Koon Poh, IEV's executive director, while Ms Ng was introduced to the firm by the sponsor.

Dato Chan is a private investor and business partner of Dato Low.

The Rain Maker is a company incorporated in Malaysia and its principal business is providing management consultancy services. Dato Low was the company secretary of TRM when he was executive director of KLM Corporate Services (M) Sdn Bhd. He resigned from KLM Corporate Services (M) Sdn Bhd in March this year, prior to being appointed executive director of IEV. 

Ms Ng is a private investor who has experience in financial investment in private and public companies in Singapore.

Except for Dato Chan, who currently holds 307,300 shares in IEV which he acquired from the open market, the subscribers do not hold any shares in IEV, IEV said.

Trading in shares of IEV will resume on Tuesday morning. Trading had been halted after the shares closed 5.66 per cent lower at S$0.05 last Friday.