New Silkroutes Group placing out new shares to raise S$25m for acquisitions

NEW Silkroutes Group Limited is placing out new shares to raise up to S$25 million for acquisitions and working capital, in what will be its largest fundraising exercise in recent years.

The group said on Wednesday night that it will issue up to 25.5 million new shares at approximately 97 Singapore cents each.

Among interested parties that are in discussion with the group, Kuala Lumpur-based Fortress Capital Asset Management (M) Sdn Bhd and Singapore-incorporated Quantum Health Pte Ltd, a healthcare investment and consultancy firm, have confirmed their interest.

If fully placed out, the number of new shares will represent 20 per cent of the group's existing issued shares and 16.7 per cent of its enlarged base. The current placement price is a shade below the last closing price of S$1.00 before the trading halt on Nov 28.

The group said it plans to use up to 80 per cent of the placement proceeds on acquisitions. Under the leadership of a new management team which came on board last year, it has expanded into oil and gas trading, infocomm technology, healthcare, and investment management, having exited its longstanding consumer IT products distribution business in June this year.