Beng Kuang Marine Limited has raised some $3.35 million in gross proceeds from a share placement exercise, to help reduce the company’s need for debt financing and other operational needs.
The placement, managed by SAC Capital, is made at 9 cents per share – a discount of 9% off its volume weighted average share price of 9.89 cents on Oct 14.
A total of 37.2 million new shares have been placed out.
The company operates via four key segments: infrastructure engineering; corrosion prevention; supply and distribution and last but least, shipping.
“Even as we prioritise costs cutting and deleveraging initiatives, we continue to focus our efforts and resources on high potential business segments to create new growth catalysts,” says CEO Yong Jiunn Run.
“The strong support of our share placement gives us more confidence and impetus with our business strategy. In addition, it provides greater financial flexibility for us to scale promising propositions within our business model,” he adds.
“With an asset-light and service-centric approach, we are confident that we will become more agile with a stronger business foundation that creates sustainable, long-term value for our stakeholders,” says Yong.
