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Sincap to place out S$5.5m of new shares to expand coal trading subsidiary
SINCAP Group plans to place out S$5.48 million of new shares to expand a newly acquired coal trading and logistics business.
Sincap, a coal trading and gypsum mining company, will sell 91.4 million new shares at six Singapore cents apiece, or 7.1 per cent above the stock's last traded price on Nov 17 of 5.6 Singapore cents.
The placement shares represent about 23.28 per cent of the existing shares.
The buyers in the placement are mostly individuals who have been introduced by directors of the company.
Sincap said 90 per cent of the proceeds will be used to expand 51 per cent subsidiary Orion Energy Resources. Orion is a China-based trading and logistics management company that is currently supplying coal to power plants.