Loss-making CCM to raise up to $143.5m

LOSS-MAKING CCM Group plans to issue up to 28.75 billion shares via an eight-for-one rights issue and another 28.75 billion bonus shares on the basis of one bonus share for every rights share subscribed.

At half a cent each, the rights shares are expected to raise a maximum of about $143.5 million in net proceeds (assuming full subscription) and a minimum of $3.3 million based on an undertaking.

Joseph Liew, CCM's executive chairman and CEO, said: "The proposed rights issue and issue of bonus shares are expected to raise the capital necessary to address two issues - funding for working capital for the Singapore construction business, and a sufficient war chest to build up our overseas property investments. The Australian and US property market cycles are each at an inflection point which offer opportunities for CCMP to invest in so as to enhance shareholder value."