Business Times reported that Oriental Group is looking to raise net proceeds of SGD 21.4 million in a placement of 179.2 million new shares at 12 Singapore cents each.
The steelmaker said that the issue price is at a 9.16% discount to Oriental's volume weighted average price of 13.21 cents on December 21, while the placement shares represent 85.9% of Oriental's existing issued and paid-up capital.
Oriental said it plans to use 37% of the net proceeds for the proposed acquisition of carbon steel manufacturer Xinghua Rongcheng, 14% to grow the group's business of making and trading industrial and construction materials, and the remaining for working capital and general corporate purposes.
The interested placees include Dingji Investments Ltd, held equally between Miao Lina and Sun Lu, respectively the adopted daughter and son-in-law of Oriental's chairman Wu Dingrong; as well as Frankland Investments Ltd, of which Chairman Wu is a substantial shareholder, and other investors from Singapore, Malaysia and China.
