Uni-Asia proposes share placement to raise funds and improve liquidity

Shipping and property investor Uni-Asia said on Wednesday that it proposed placing up to 5.42 million shares at S$1.08 each to raise funds for property investments and to improve the stock’s liquidity.

The expected net proceeds of S$5.42 million, after expenses, will likely be earmarked for property or hotel projects, possibly including ALERO Japanese residential developments, which are low-rise apartment buildings usually located in Tokyo, Uni-Asia said in a filing to SGX on Wednesday.

The funds may also be used for Hong Kong property projects, the company said, but added that it hasn’t yet identified specific property or hotel projects.

Read more:Uni-Asia: Ships and property make for strange, but complementary bedfellows

Uni-Asia said it believes the placement is an “efficient and beneficial” method of raising the funds.

“In addition, through the placement, the company hopes to broaden the company’s shareholder base as well as to improve trading liquidity,” it said.

The placement price is a 9.98 percent discount to the volume weighted average price of the shares on Monday, which was the last trading day before the placement agreement was signed, Uni-Asia said.

The new shares will represent 11.54 percent of the share base prior to their issue and around 10.34 percent after the placement, Uni-Asia said.

The placement agreement is with Maybank KimEng, which will procure subscriptions and payments for the new shares, the filing said.

Shares of Uni-Asia dropped 8.2 percent to S$1.12 by 10:40 A.M. SGT.