The new owners of Serial Achieva are also placing out shares worth $2.5 million to new and unrelated shareholders to meet the minimum free-float requirement. Proceeds from the placement will be used to expand its business and for general working capital. “Whether it is an RTO [reverse takeover offer] or IPO, it’s just a means to an end, and the end in this particular instance is for us to be able to raise funds from the market,” says Sean Goh, chairman of Serial Achieva, when asked about the reason for choosing a backdoor listing.
Following several attempts, Axington is set to shed its status as a shell company. Under new controlling shareholders following a long-drawn reverse takeover deal, Axington will morph into a distributor of electronics keen to grow beyond Asean with an expanded product portfolio.
Under the deal, Axington is paying $27 million in new shares at 23.6 cents each for Serial Achieva to be injected into its shell.
