Soilbuild Construction proposes share and warrant offering to fund factory expansion

Bricks at a construction site in Ho Chi Minh City, VietnamBricks at a construction site in Ho Chi Minh City, Vietnam

Soilbuild Construction proposed on Thursday a preferential offering of up to 168.25 million new shares, which is expected to raise around S$12.3 million, and up to 168.25 million free detachable warrants, which if fully exercised would raise another S$12.3 million.

The net proceeds of the preferential offering are earmarked to fund an expansion at the Malaysia plant, Soilbuild Construction said in a filing to SGX.

“The further expansion of the group’s manufacturing and fabrication facilities in the Pontian Factory would broaden the production scale of the group for premium precast building components and allow the group to tap on the anticipated growing demand of such concrete products,” Soilbuild Construction said.

The proceeds from exercising the warrants are earmarked to partially repay bank borrowings, which include an existing secured term loan of around S$50 million due in 2021, the company said.

Each rights share with warrant will have an issue price of S$0.073, with the warrants carrying the right to subscribe for one share at S$0.073, the company said.

The issue price is an around 8.8 percent discount to the weighted average price for trades on Thursday, the company said.

The offering will be on the basis of one rights share and one warrant for every four existing ordinary shares, Soilbuild Construction said.

 

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