ASL Marine eyes $18.3m from rights issue

The offshore vessels builder said Singapore Exchange (SGX) has granted an in-principle approval for the listing of and quotation for up to 209,755,647 rights shares at an issue price of SGD0.12 per share.

ASL Marine said it will disclose a breakdown with specific details on the use of the proceeds for working capital in the company’s forthcoming annual report.

For its financial year ended 30 June 2016, ASL posted a net profit of SGD1.99m, a plunge of 75% from the profit of SGD7.93m in the previous financial year.

The sluggish global offshore and marine industry due to low oil prices has dampened demand for new OSVs, with ASL Marine saying it is continuing to streamline operations and cost structure.