Innotek (SGX:M14
) plans to raise up to $16 million by placing out up to 24.6 million new shares at 65.06 cents each.
The placement price represents a discount of approximately 9.5% to the volume weighted average price of 71.89 cents, based on the last full market day of April 2.
The placement shares represent approximately 9.54% of the enlarged issued and paid-up share capital of the company.
In the recent FY2025 results, Innotek has announced the final dividend of 2 cents per share on February 26.
With the placement shares expected to be issued before the record date, which will be announced by Innotek in due course, the shares are expected to rank for the FY2025 final dividend.
According to Innotek, the estimated net proceeds from the placement is approximately $15.4 million and has earmarked $14 million for general corporate activities including potential acquisitions, joint ventures and/or strategic alliances and expansion of its operations in Southeast Asia.
The remaining $1.4 million will be allocated for general working capital. The placement exercise is managed by Maybank Securities.
Separately, Lou Yiliang, who is Innotek’s executive director and CEO, will be undertaking a vendor share sale of 6.15 million shares at 65.06 cents each by way of a married deal.
Maybank Securities has been appointed by Lou to execute the sale two market days after the placement shares are listed and quoted on SGX on a best effort basis.
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Meanwhile, Lou has voluntarily committed to a self-imposed moratorium on any further sale or transfer of his shares in Innotek for six months following the sale. Post completion, Lou continues to hold an aggregate of 9.63% stake in Innotek.
Innotek expects the sale to further diversify and broaden its shareholder base, thereby potentially improve the trading liquidity of its shares.
Shares in Innotek last traded at 74 cents before the trading halt occurred on April 6.
