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JES places out shares to raise S$6.6 million

SHIPBUILDING firm JES International has placed out shares representing a 15.5 per cent stake in the company to investment holding firm Brilliant Choice International and private investor Sun Yiyi.

Both have agreed to subscribe for 183 million new ordinary shares in the firm at S$0.036 a share - a discount of about 0.28 per cent to the weighted average price of S$0.0361 on Monday. This will raise about S$6.6 million, which will go towards paying JES Overseas Investment (JESOIL).

JES had earlier borrowed 120.8 million JES shares from JESOIL, for which JESOIL has requested a return. As JES is unable to return the shares, worth S$11.2 million, it has agreed with JESOIL to pay a portion of this as partial settlement of the loan securities.

After the placement, JES' issued and paid-up share capital will rise by S$6.6 million, and its number of ordinary shares will increase from 1.2 billion to 1.4 billion.

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Brilliant Choice, incorporated in the British Virgin Islands, focuses on investing in marine assets, and has previously invested in vessels and shipping companies. Mr Sun, whose family is involved in the construction business in China, is in charge of the family fund and is now diversifying his portfolio to include marine-related business, said JES.