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Magnus Energy to raise S$1.18m from placement of 1.31b new shares

MAGNUS Energy Group is placing out 1.31 billion new shares at 0.09 Singapore cent apiece to 10 parties to raise S$1.18 million in cash.

Magnus attributed the rationale for the share placement to the need to bolster its working capital position and to inject funds to grow the business, it said in a filing with the Singapore Exchange on Thursday night.

The issue price of the placement represents a discount of about 10 per cent of the shares' volume-weighted average price of 0.1 Singapore cent on March 8.

The placement shares represent about 10.37 per cent of Magnus Energy's enlarged share base of about 12.63 billion.

The subscribers are oil contractor Blue Water Engineering, with 250 million shares; alternative-investments firm Idola Cakrawala International and individuals Chung See Mooi and Yeo Chee Seng, with 200 million shares each; individuals Ho Geok Bin and Molly Ang Siew Teng, with 100 million shares each; individual Ong Chin Yew, with 90 million shares; equity investment firm Offshore Capital Solutions, with 60 million shares; and individuals Tan Bak Choon and Lai Cher Foong, with 50 million shares each.

Charles Madhavan, who owns stakes in Blue Water and Idola Cakrawala and whose spouse has an existing stake in Magnus, will become a substantial shareholder of Magnus with a total deemed interest of 5.42 per cent after the placement.

The proceeds from the placement will be used as general working capital for Magnus Energy and as funds for a microalgae plant that is nearing its completion, the company said.

Its shares traded at 0.2 Singapore cent as at 9.11am on Friday.