Grand Venture Technology (GVT) is seeking to raise up to $28.5 million through the placement of up to 25 million new shares at an issue price of $1.14 per share.
GVT’s controlling shareholder Metalbank Singapore is also placing up to 10 million shares at the same price per share.
CGS-CIMB Securities (Singapore) has been appointed as the placement agent.
The announcement follows GVT’s announcement on Sept 1 on its intention to transfer its listing from the Catalist board to the Mainboard.
See: Grand Venture Technology proposes to transfer listing to SGX Mainboard
The placement price represents a discount of approximately 7.8% to the volume weighted average price of the shares of $1.236, for trades done on the SGX-ST on Aug 31 and Sept 1.
The new shares issued will represent approximately 7.6% of the enlarged issued and paid-up share capital of the company (excluding treasury shares) of 330.78 million shares.
In a filing to SGX on Sept 3, GVT states the proceeds raised from the placement of new shares will be deployed to build on the group’s competencies, customer base, and scale of its capacity.
In line with the company’s intention to undertake a transfer of listing to the Mainboard. GVT says the proposed placement will also allow it to increase its share trading liquidity, public float and shareholder count.
Out of the estimated net proceeds of $27.5 million, 40%-45% will be utilised for expansion via mergers and acquisitions, joint ventures and partnerships, 40%-45% will be utilised for investing and enhancing operational and engineering capabilities, while 10%-20% will be used for general working capital purposes.
Pro forma financials based on 1HFY2021 ended June results indicate an increase in net tangible assets per share from 21.79 cents to 28.46 cents following the placement, while earnings per share decreases from 3.07 cents to 2.49 cents.
Metalbank currently holds 94.95 million shares representing approximately 31.05% of the existing share capital of the Company. The 10 million shares being placed by Metalbank represent approximately 3.3% of the existing share capital of GVT and will represent approximately 3% of the enlarged share capital.
As announced on Sept 1, GVT has been informed that the individual shareholders of Metalbank have expressed an intention to hold their shares directly and accordingly, Metalbank will be transferring its shares to the individual shareholders in proportion to their respective shareholdings in Metalbank, in consideration of a reduction in the number of shares held by the individual shareholders in Metalbank.
Following the completion of the distribution, Metalbank will cease to be a shareholder of GVT.
Shares in GVT last traded at $1.25 before trading was halted on Sep 1.
Photo: Samuel Isaac Chua/The Edge Singapore
