United Food plans to raise S$10m through share placement

UNITED Food Holdings has proposed a placement of 25.8 million new shares at 39 Singapore cents apiece that will raise some S$10 million to enable the soyabean producer to pursue potential acquisitions or joint-venture opportunities and for general working capital.

The firm, which is on Singapore Exchange's watch-list, inked an agreement on Wednesday to place the shares out to Gu Yulin, Liu Jun and Ting Cheng-Fa - private investors who were introduced to the company by its non-executive chairman Song Yanan.

United Food said the placement price represents a premium of some 3.75 per cent to the volume-weighted average price of 37.59 Singapore cents (about HK$2.126) for the full market day on Wednesday, the day the placement agreements were inked.

At the stock's closing price of 38.5 Singapore cents on Wednesday, the placement price stood at a 1.3 per cent premium.