Raffles Education proposes placement of up to 95m new ordinary shares

MAINBOARD-LISTED Raffles Education Corporation (REC) has entered into a placement agreement with RHB Securities Singapore on Wednesday where RHB Securities will procure subscriptions and payment for up to 95 million new ordinary shares in the capital of REC at an issue price of S$0.30 each.

This represented a discount of approximately 9.04 per cent to the volume weighted average price of S$0.3298 for trades done on them on the Singapore Exchange (SGX) Securities Trading that day as it was the trading day on which the agreement was signed, REC said in an SGX filing on Thursday.

The gross proceeds of the placement are estimated to be up to S$28.5 million and REC said it intends to use the net proceeds of up to S$28.2 million for repayment of loans and borrowings and general working capital purposes.

As at Thursday, REC has in aggregate 965.5 million issued shares, excluding the 79.79 million treasury shares. The allotment and issue of the placement shares will increase the total number of REC's issued shares to up to 1.06 billion shares, which excludes treasury shares.