Mary Chia Holdings proposes S$2m private placement of shares

CATALIST-LISTED Mary Chia Holdings is proposing a private placement of up to 26.67 million new ordinary shares in the company at an issue price of 7.5 Singapore cents each, amounting to a total cash consideration of S$2 million.

The proposed placement will allow the company to strengthen its financial position by raising net cash proceeds (after deducting estimated expenses of S$50,000) of around S$1.95 million, of which S$1 million is intended for use as working capital and the remaining S$950,000 for overseas expansion purposes. 

The announcement was made on Friday night. The company entered into a placement agreement with SAC Capital the same day.

Mary Chia Holdings said the issue price represents the volume-weighted average price for trades done on the Singapore Exchange on Nov 27, 2019, being the last full market day on which the shares were traded prior to the date of the placement agreement.

The proposed placement, which is not underwritten, will be made to accredited investors in accordance with Sections 274 and 275 of the Securities and Futures Act, Chapter 289 of Singapore.

The placement shares represent about 16.31 per cent of the company's existing issued and paid-up share capital (excluding treasury shares and subsidiary holdings) and about 14.02 per cent of its enlarged share capital, following the completion of the proposed placement.

Mary Chia Holdings said it will apply to the Singapore Exchange Securities Trading Limited (SGX-ST) through its sponsor PrimePartners Corporate Finance for the dealing in, listing of and quotation for the placement shares on the Catalist board.

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