Metal Component Engineering is raising $3.3 million in gross proceeds via a placement to fund its move into new business areas of healthcare and e-commerce.
Under terms of the placement, the company will issue 66.53 million new shares at 4.95 cents each, which is a discount of 9.5% to the volume-weighted average price of 5.47 cent on Nov 15.
The shares will be taken up by a group of 15 investors, including Dr Lim Cheok Peng, former CEO of Parkway Holdings and managing director of IHH Healthcare.
Dr Lim is subscribing his 8.2 million shares worth some $405,900 via a vehicle called Kessler Investment Holding, which is jointly held with Loh Foong Han.
The single largest investment will come from Yong Yean Chau, CEO of Parkway Life REIT. Yong, subscribing in his personal capacity, is taking up 17 million shares worth $841,500. He will hold 3.37% of Metal Component upon completion of the exercise.
On Oct 14, MCE, through its wholly-owned subsidiary, 5Digital, announced an investment in PT Gaido Digital Medika in West Java, where its joint venture partner, the Gaido group is “well-entrenched”.
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A fortnight later, MCE, again via 5Digital, invested in MedTel Healthcare.
"MCE has progressed well to realise its vision of creating an integrated digital healthcare platform and we want to further leverage on our assets to be well placed in South East Asia," says chief investment officer Ahillan Pupalasingam.
"All further new investments will be synergistic to our current assets with the intention to maximise shareholder value," he says, adding that the company is eyeing similar opportunities in the Philippines and Vietnam too.
