King Wan Corporation has raised $6.98 million in gross proceeds through its rights issue.
The company, on March 31, proposed a renounceable non-underwritten rights issue of up to 349.18 million new shares at an issue price of 2 cents per rights share.
On Sept 7, King Wan announced that it had received applications for 616.05 million rights shares, representing 176.4% of the 349.18 rights shares available.
After deducting the estimated costs and expenses of around $0.23 million, the company’s net proceeds total $6.75 million. The net proceeds will be used for the expansion and growth of the existing business and general working capital purposes.
The shares will be listed and quoted on the SGX-ST’s Mainboard at 9am on Sept 8.
King Wan, on Sept 1, received a query from the Singapore Exchange Regulation (SGX RegCo) for the “unusual volume movements” of its shares.
See: King Wan share price shoots up 44%, prompting SGX query on 'unusual volume movements'
On that day, the company’s share price surged 44% to a high of 3.6 cents.
King Wan later issued a response that it was in talks with an unnamed third party to set up a joint venture for retrofitting and upgrading works.
Shares in King Wan closed 0.6 cent lower or 7.41% down at 7.5 cents on Sept 7.
