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Jiutian Chemical proposes up to S$10.3m share placement
JIUTIAN Chemical is looking to raise up to about S$10.3 million through a non-underwritten placement of up to 170 million new shares at an issue price of 6.03 Singapore cents apiece.
The issue price represents a discount of approximately 5.63 per cent of the volume weighted average price of 6.39 cents for trades done on the Singapore Exchange last Thursday, the last full market day before the placement agreement was signed.
Through the proposed placement, Jiutian Chemical is looking to strengthen its financial position and improve its shareholder profile, it said in a bourse filing on Monday.
The Catalist-listed firm, which produces coal-based fine chemicals, on Friday entered into a placement agreement with placement agent CGS-CIMB Securities (Singapore). It will pay CGS-CIMB a placement commission equal to 2.25 per cent of the issue price for each placement share.
All the net proceeds - estimated at close to S$10 million - will be used for general working capital, which may include investments in asset enhancement and improvement if needed.
The placement is not underwritten and will be undertaken by way of an exempt offering in Singapore in accordance with Sections 274 and 275 of the Securities and Future Act.
The placement shares, assuming all are placed out, will represent about 8.55 per cent of the enlarged issued share capital of the company.
The shares will be allotted and issued under the general share issue mandate which Jiutian Chemical shareholders granted at the June 23 annual general meeting.
Shares of Jiutian Chemical rose 0.2 cent or 3.1 per cent to trade at 6.6 cents as at 1.50pm on Monday. The stock was the second most actively traded by volume on the Singapore bourse, with 81.9 million shares changing hands by then. At 11.51am on Monday, the company had requested to lift a trading halt it called on Friday.