Yongnam Holdings has proposed a placement of up to S$15 million of new, non-listed convertible bonds with a two-year maturity and a 7 percent interest rate, payable half-yearly.
The conversion of the bonds would result in the issuance of a maximum of 83.80 million shares, or around 13.8 percent of the enlarged share capital, Yongnam said in a filing to SGX.
The placement is aimed at raising funds for working capital purposes and to boost the company’s financial position, which the board expects will support future growth, the filing said.
The placement will target institutional investors, high-net-worth individuals, family offices, corporates and accredited investors.
CGS-CIMB Securities (Singapore) is the placement agent, and will receive a placement commission of 3 percent of the sale proceeds.
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