The subscription shares have been offered at SGD0.02 apiece to Greatwill Asset Global Limited, an investment holding firm owned by Lim Oon Cheng.
Singapore-listed Vallianz said the subscription price represents a premium of about 11.1% to the volumes weight average price of SGD0.018 over 13-16 January 2017.
The net proceeds of SGD6.8m to be raised from the deal would go towards strengthening of strategic alliance and joint ventures and working capital for Vallianz.
“The directors are of the opinion that, after taking into consideration the group’s present banking facilities and the net proceeds, the working capital available to the group is sufficient to fund its intentions under the use of proceeds and meet its present requirements,” Vallianz announced.
The 350m subscription shares represent approximately 9.7% of Vallianz’s issued share capital as at 16 January 2017, and approximately 8.9% of the enlarged share capital after the allotment and issuance of the shares.
The proposed subscription exercise will see the controlling shareholders of Vallianz, Swiber Holdings and Rawabi Holding, have their respective shareholdings diluted from 25.2% to 22.9% and 18.7% to 17%, respectively.
Offshore services firm Vallianz earlier announced the cessation of operations at its shipyard in Singapore since end-2016 due to the weak offshore market and a discontinuation of business with a key local customer.
The company’s Batam base in Indonesia will continue to service the group’s fleet of vessels and support activities required to fulfil chartering contracts.
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