LHN to raise S$2.2m in private placement of up to 6.5m new shares

DUAL-LISTED property player LHN on Friday announced that it will raise a total of S$2.2 million from placing out up to 6.5 million new shares, at 33.51 Singapore cents each, on the Catalist board of the Singapore Exchange (SGX) under its general mandate.

Assuming that all the shares are fully placed out, LHN is expecting net proceeds of S$2.1 million which it intends to use for general working capital purposes. This will include renovation costs of the group's properties as well as operating expenses, said the group in its filing.

The placement price represents a discount of about 10 per cent of the weighted average price of 37.23 cents per share for trades done on the SGX on Thursday.

It represents a premium of 6.2 per cent to the Thursday closing price of HK$1.85 (32 Singapore cents) per share on the Hong Kong Stock Exchange, which LHN is also traded on.

The total placement shares amount to 1.62 per cent of the existing issued share capital of LHN of about 402.4 million shares. Post the placement, they will comprise 1.59 per cent of the enlarged share capital of the company of 408.9 million shares.

Soochow CSSD Capital Markets has been appointed as the placement agent for the deal.

LHN's private share placement exercise comes days after the group said it was "aggressively looking" to acquire properties to purchase for its co-living business, Coliwoo Holdings.

The company made this comment as part of a June 9 disclosure announcing that Coliwoo had contributed an additional S$499,999 to the issued and paid-up ordinary share capital of a joint venture.

Shares of LHN closed at S$0.425 on Friday, up 14.87 per cent.