Raffles United gets in-principle SGX nod, major shareholder's undertaking for rights issue

Singapore

BEARINGS and seals supplier Raffles United Holdings has received in-principle approval from the Singapore bourse for the listing of up to 234 million new shares under a one-for-one rights issue, and obtained an undertaking from its major shareholder to fully subscribe for her entitlement.

The rights issue, priced at S$0.05 each, is expected to raise between S$7.6 million and S$11.6 million of net proceeds, after deducting S$0.1 million for estimated professional fees and related expenses. Raffles United intends to use the majority of the proceeds to repay bank borrowings, with the remainder to finance working capital requirements.