According to Straits Trading in its Jan 18 announcement, the placement, which represents some 6.39% of its total issued shares, is meant to address the low trading liquidity of the company's shares.
The Straits Trading Company plans to place out $80.86 million worth of new shares, to improve liquidity and to raise funds for potential acquisitions, among other purposes.
The company will be placing a total of 26 million new shares at $3.11 each, which is a discount of around 8.9% off the volume weighted average price (VWAP) of $3.4126 for all trades conducted on Jan 13, just before a trading halt was called on the morning of Jan 14.
