Beng Kuang Marine plans to raise $1.3 million by undergoing a placement exercise.
To be handled by SAC Capital, the company plans to place out up to 27 million new shares which will enlarge the company’s share capital by 16.7%.
The placement shares are priced at 5 cents each, which is a discount of 9.1% off its last traded price on June 18.
“The company has decided to undertake the proposed placement in order to increase resources available to the company.”
“The directors are of the opinion that the proposed placement is beneficial for the group as this will improve its cash flow to support the working capital requirements of the group,” states the company.
On June 2, the company appointed Yong Jiunn Run as its new CEO. He was previously CIMB Singapore’s head of commercial banking.
Chua Meng Hua, the company’s previous CEO and managing director, has been redesignated as an executive director.
For the year ended Dec 2020, the company reported earnings of $15.4 million, from a profit of $5,000 in the preceding year. Revenue in the same period was down 27% to $42.7 million.
