Transit-Mixed Concrete has entered into a placement agreement with seven investors, who have collectively agreed to subscribe to 34.7 million new ordinary shares at an issue price of 14 cents per share for a total of $4.86 million.
The issue price represents a 7.7% premium to Transit-Mixed Concrete’s volume-weighted average price (VWAP) of 13 cents as of May 18, the last day on which shares of the company were traded.
The placement shares represent approximately 49.9% of the existing issued and paid-up share capital (excluding treasury shares) of the company as of May 25.
Post-completion, the new shares will represent approximately 33.3% of the enlarged issued and paid-up share capital (excluding treasury shares) of the company.
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Net proceeds are estimated to total $4.81 million, which will be used in its entirety for the expansion of the business and working capital purposes.
The seven investors include the chairman of Mainboard-listed Tai Sin Electrical Bobby Lim Chye Huat as well as Chua Keng Woon, an independent director on the boards of Hai Leck Holdings and Asiamedic. Both Lim and Chua each subscribed to 11 million of the new shares for $1.54 million respectively.
The remaining investors listed include Lim Ching Tiew, Lim Siang Hwa, Too Lee Soong. All the investors were states as subscribing to the placement “for personal investment reasons”.
Shares in Transit-Mixed Concrete closed flat at 13 cents on May 25.
