Uni-Asia plans placement of up to 5.42m shares at S$1.08 each

UNI-ASIA Group announced on Tuesday that it has entered into a placement agreement with Maybank Kim Eng Securities to issue up to 5.42 million shares at S$1.08 each.

The placement price represents a discount of approximately 9.98 per cent to the volume-weighted average price of S$1.1998 per share based on trades done on March 25.

Assuming the placement shares are fully subscribed, they represent approximately 11.54 per cent of the issued shares to date, and will represent approximately 10.34 per cent of the enlarged issued shares immediately after the placement.

The net proceeds after deducting estimated expenses pertaining to the placement are estimated to be approximately S$5.42 million, and are intended to be used for investments in potential property or hotel projects in the ordinary course of the company's business.

As at the date of this announcement, the company said that it has not identified any specific property or hotel projects for which the net proceeds are intended to be used.

Uni-Asia said the placement is an "overall efficient and beneficial method of raising funds" to finance its investments. The company also hopes to broaden its shareholder base, as well as improve the trading liquidity of its shares with an enlarged shareholder base.