Viking Offshore and Marine launches private placement to raise S$880,000

CATALIST-LISTED Viking Offshore and Marine 1Y1 : 1Y1 0%has announced the launch of its private placement to raise gross proceeds of S$880,000 from entrepreneur Xiang Xiping.

The company will be issuing 11 million shares, priced at S$0.0801 each, as it hopes to "strengthen its balance sheet, capital structure and enhance its financial flexibility", it said in a bourse filing on Tuesday (Jan 18) night.

Net proceeds from the share placement will be used as general working capital for operating, administrative and related expenses, as well as trade and non-trade payments, Viking Offshore said.

The placement price of S$0.0801 represents a discount of 8.6 per cent to the counter's volume-weighted average price of S$0.08762 for all trades done on Jan 17.

The placement shares will represent approximately 2 per cent of the company's existing issued share capital and about 1.96 per cent of the enlarged issued share capital of the company, upon completion of the placement.

Viking Offshore said it was introduced to the placee, Chinese national Xiang Xiping, by the company's executive director Ong Swee Sin. Ong did not receive any introduction or commission fees.

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The placee is an entrepreneur with more than 10 years' experience in the wellness industry, the company said. She has not participated in any of Viking Offshore's previous share placements and currently does not hold any shares, warrants or any other securities in the company.

Viking Offshore also said that Xiang, is subscribing for the shares for "investment purposes". It added that none of the directors or substantial shareholders have any business connection or relationship with Xiang.

Assuming the placement was completed on Dec 31, 2020, Viking Offshore's net tangible asset per share as at Dec 31, 2020 would have decreased to 62.61 Singapore cents from 97.93 cents.

Meanwhile, it expects its loss per share for its financial year ended Dec 31, 2020 to narrow to 79.13 cents from 118.54 cents, assuming the placement was completed on Jan 1, 2020.

There is no placement agent appointed for the proposed private placement.

Shares of Viking Offshore closed on Wednesday at 8.7 Singapore cents, down by 0.2 cent or 2.3 per cent, after the announcement.

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