Sincap to conduct share placement to raise S$8m

ALUMINA and thermal coal trader Sincap Group is planning a placement of up to 450.25 million new shares in the firm to raise about S$8 million.

The firm entered into a conditional placement agreement with KGI Securities (Singapore) on Thursday, under which KGI agreed to procure subscriptions for the shares at an issue price that will not be less than 1.8 Singapore cent per share. This price represents a discount of about 10 per cent to the weighted average price of 2 cents for trades done on Aug 30.

If taken up in full, the placement will allow the firm to raise net cash proceeds of about S$8 million.

Some 90 per cent of the net proceeds will be used to support current businesses and for business development, while 10 per cent will be used for general working capital purposes, Sincap said in an exchange filing on Thursday evening.