SIIC unveils plans for use of funds from placement

MAINBOARD-LISTED SIIC Environment Holdings plans to use $260.2 million in net proceeds from a proposed share placement to help fund expansion of waste-water treatment plants and completion of two merger and acquisition (M&A) deals in Shanghai over the next six months.

Hong Kong-based SIIC will be the largest water treatment and management company, based on market capitalisation, among Chinese water industry players listed in Singapore once the share placement is completed, SIIC executive chairman Zhou Jun told analysts yesterday.

Post-placement, SIIC's market cap is expected to increase to US$700 million-US$800 million from US$500 million - which will give the company the added fillip to have a dual listing on the Hong Kong Stock Exchange by next year.