Sanli Environmental raises about S$10 million in placement amid record order book
It will use the net proceeds primarily for general working capital purposes
[SINGAPORE] Catalist-listed Sanli Environmental raised gross proceeds of some S$10 million in its placement of nearly 38.5 million fully paid-up ordinary shares at an issue price of S$0.26 apiece.
In a bourse filing on Monday (Dec 1), the environmental engineering group that specialises in water and waste management noted that it intends to use the net proceeds primarily for general working capital purposes.
This includes supporting the execution of ongoing engineering, procurement and construction projects.
The placees include institutional investors such as Areca Capital, Avanda Investment Management, Ginko-AGT Global Growth Fund, UOB Asset Management and Value Partners Hong Kong.
SAC Capital served as the placement agent, while Maybank Securities was the sub-placement agent.
Sim Hock Heng, the chief executive and executive director of Sanli, said that the placement strengthens the group’s financial position to support future growth initiatives, and builds on the momentum of its record order book.
The group’s order book has reached a fresh high of S$781.5 million, with the addition of a new project it secured in November from Singapore’s national water agency PUB that has a contract value of S$205 million.
The record order book also includes the group’s largest single contract secured to date – a Land Transport Authority project worth about S$281 million. It involves the supply and installation of electrical services for Cross Island Line Phase 1 and the Cross Island Line’s Punggol extension.
Earlier in July, Sanli completed its first share placement since its listing in 2017. It raised gross proceeds of S$4 million from the placement of 33.3 million shares at S$0.12 each.
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Sanli’s share price has grown more than 200 per cent in the year to date. The counter closed Monday at S$0.29, down S$0.005 or 1.7 per cent, before the announcement.
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