UK-based but Singapore-listed satellite company Global Invacom Group plans to raise up to up to $4.9 million via a rights issue to fund business expansion.
Shareholders holding two shares will be entitled to subscribe for a rights share at 3.5 cents each.
At 3.5 cents, each rights share is a discount of around 51.4% to the June 15 closing price of 7.2 cents, and 41.7% discount to the theoretical ex-rights price of 6 cents.
The issue, which will see some 140 million new shares issued, is managed by RHT Capital.
Soochow Singapore Capital Markets (Asia) is the underwriter and Maybank Securities is the sub-underwriter.
The company provides multi-orbit, multi-band RF and terminal platforms for the global satellite ground network industry, serving defence, earth observation (EO), intelligence, surveillance and reconnaissance (ISR) and satellite communications applications.
See also: Mooreast's $6 mil placement attracts Amova, Lion Global
“The board believes the satellite ground segment presents a significant and growing market opportunity,” says Global Invacom.
Citing the Novaspace Ground Segments Market Prospects reports, Global Invacom says the total addressable market is estimated to grow from approximately US$1.9 billion in 2026 to around US$3.1 billion by 2030.
The growth is driven by the expansion of non-geostationary orbit satellite constellations, increasing demand for multi-orbit and multi-band connectivity, and sustained growth in the defence and earth observation sectors.
See also: Mooreast aims to raise $6 mil by issuing new shares at 13.5 cents each
Global Invacom says the new funding raised will go towards its bid to grow its earth observation and ground station integrated solutions business; multi-band transceiver platform expansion; flat panel antenna ecosystem participation; multi-orbit terminal development; and last but not least commercial go-to-market capability.
“The rights issue will allow the company to further invest in these strategic areas and strengthen the group's working capital position and also to provide shareholders with an opportunity to participate in the equity of the company on a pro rata basis,” says Global Invacom.
Global Invacom shares dropped 13.89% to trade at 6.2 cents as at 11.08 am.
