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ZICO to raise S$3 million in S$0.15 per share placement
ZICO Holdings has entered into placement agreements with two individuals to raise gross proceeds of S$3 million to support the working capital requirements of its operation costs.
It plans to issue 20 million new shares at the issue price of S$0.15 per placement share.
The issue price represents a premium of 3.45 per cent to S$0.145, being the weighted average price of ZICO shares based on trades done on Thursday.
One of the placees is Yeo Keng Joon, who will pay S$2 million for 13,333,333 million new shares, amounting to a 4.15 per cent stake in ZICO's enlarged share capital.
Mr Yeo is the chairman of Bharat Luxindo Agrifeeds, which manufactures and markets aquaculture feeds in Andhra Pradesh, India. He was introduced to ZICO by ZICO managing director Chew Seng Kok.
The second placee is James Khong Poh Wah, an existing shareholder who currently holds 2,519,200 shares in ZICO, or a 0.83 per cent stake. He will pay S$1 million for 6,666,667 new shares. This will raise his stake in ZICO's enlarged share capital to 2.86 per cent.
The placement is subject to certain conditions. If these conditions are not satisfied within three months from the date of the placement agreement, the agreement will be terminated.