Yangzijiang to raise S$208.8m via share placement to fund new investments

CHINESE shipbuilder Yangzijiang Shipbuilding is looking to raise net proceeds of S$208.8 million by placing out 137 million new shares at S$1.53 each to institutional investors and other investors.

The placement price represents a discount of about 4.07 per cent to the volume weighted average price of S$1.5949 for trades done for the full market day of Aug 29, 2017.

The placement shares represent about 3.6 per cent of the existing share capital, and about 3.5 per cent of the enlarged share capital of the company.

"The company intends to use up to 50 per cent of the net proceeds to fund new investments and business expansion through acquisitions, joint ventures and/or strategic alliances as and when opportunities arise, with the remainder to be used for working capital and general corporate purposes of the group, including the repayment of bank borrowings and loans," it said.