SINGAPORE (May 6): GKE Corporation is looking to raise some $7 million by issuing out 100 million new ordinary shares of the company at 7 cents per placement share to fund its expansion plans.
The placement represents 12.7% of the enlarged share capital of 788.53 million shares.
In a Monday filing, GKE says it intends to use the proceeds to expand its ready-mix cement production to Cenxi City in China as the group’s wholly-owned subsidiary, Wuzhou Xing Jian, has agreed to invest RMB48 million ($9.7 million) to construct a new ready-mix cement plant in Longmu Village, Cenxi City.
In return, the Cenxi Government will transfer the land use rights of 25 mu (equivalent to approximately 16,666.7 square meters) of land with a tenure of 50 years, subject to a tender price determined through a bidding process.
“The success of Wuzhou Xing Jian, which is one of the most advanced automated ready-mix cement plants in China, led to this expansion opportunity for the Group to construct a new ready-mix cement plant to support the ongoing urbanisation plans in Cenxi City,” says Neo Cheow Hu, CEO of GKE.
“While the warehousing and logistics industry in Singapore continues to face headwinds, we are actively looking for positive catalysts to generate stable and sustainable income for our shareholders in the long term,” he adds.
Shares in GKE closed 5.26% lower at 7.2 cents on Friday.
