Yongnam to place S$12.1 million of shares at S$0.255 apiece for working capital

YONGNAM Holdings is placing out S$12.1 million of shares at 25.5 Singapore cents apiece to raise working capital, the engineering and construction company announced on Thursday after the market closed.

The placement price is 6 per cent below the stock's volume weighted average price of 27.13 Singapore cents on Thursday, and 5.6 per cent below Thursday's closing price of 27 Singapore cents.

The 47.5 million new shares being offered represent 10 per cent of existing issued share capital, and 9 per cent of the enlarged share base. If the share placement had been completed on Jan 1, 2017, Yongnam's net loss per share for the year ended Dec 31, 2016, would have narrowed to 7.13 Singapore cents from the actual 7.99 Singapore cents. Net tangible asset per share, assuming the placement was completed on Dec 31, 2016, would have been diluted to 59.49 Singapore cents from the actual 62.94 Singapore cents.

The S$11.9 million in net proceeds are earmarked for working capital.

CIMB Securities is the placement agent.