Yongnam Holdings is looking to raise $7.94 million through the proposed placement of 104.52 million new ordinary shares in the capital of the company, at an issue price of 7.6 cents per share.

The issue price represents a discount of approximately 9.85% to the volume weighted average price (VWAP) for trades done on April 12.

The placement agreement was entered into with W Capital Markets on April 13.


SEE:Yongnam clinches 5 contracts in Singapore and Hong Kong worth $101.3 mil


Assuming all the placement shares are placed out, the company’s issued share capital will increase to 627.12 million shares from 522.60 million shares. The new shares will represent 16.7% of the enlarged share capital.

Want our latest Singapore corporate news stories for FREE

Follow our Telegram, Facebook for the latest updates round the clock

The proposed placement will not result in a transfer of controlling interest.

The net proceeds from the placement are estimated to be $7.5 million, which the company says will be utilised in its entirety for working capital purposes.

Shares in Yongnam closed at 8.3 cents per share on April 12.