Metal manufacturer Miyoshi seeks to raise S$7m in private placement

METALMAKER Miyoshi Limited announced it is seeking to raise S$7.05 million in proceeds through a private placement of 115 million new ordinary shares at S$0.0613 apiece.

The price is a 9.99 per cent discount to the volume-weighted average price of S$0.0681 for each share based on trades last executed on the Singapore Exchange on May 8, 2018.

Assuming the placement shares are fully subscribed, they will make up 23.28 per cent of the company's existing issued and paid-up share capital, and will increase the company's issued and paid-up share capital to 609.07 million ordinary shares.

CGS-CIMB Securities is the placement agent, while Maybank Kim Eng Securities is the sub-placement agent.

Net proceeds will be around S$6.82 million after deducting placement expenses of S$229,500, Miyoshi said.

Around 90 per cent of net proceeds will go towards additional investment in the group's electric vehicle business, which Miyoshi says may involve the provision of loans to or additional equity investment in Core Power (Fujian) New Energy Automobile, or investment in other companies engaged in the electric vehicle business, with the remainder for general working capital purposes.

Miyoshi announced on April 2 that affiliate Core Power had entered into an agreement with Jiangxi Changhe Automotive, a subsidiary of car giant Beijing Automotive Group to jointly develop a new all-electric vehicle. On Wednesday, Miyoshi announced that Core Power had secured two new sale contracts to sell 50,000 all-electric cars within three years to Jiangxi Changhe.

Miyoshi's counter was trading down S$0.001, or 1.47 per cent, at S$0.07 apiece as at 9.47am on Thursday.