Grand Venture Technology proposes placement to raise up to S$28.5M

Singapore two-dollar bills

Grand Venture Technology (GVT) has proposed a placement of up to 25 million new shares at S$1.14 each to raise up to S$28.5 million, the manufacturing services provider for the semiconductor, life sciences and electronics industries said in a filing to SGX Friday.

In addition, Metalbank Singapore, GVT’s controlling shareholder with 94.95 million shares or a 31.05 percent stake, will offer up to 10 million existing GVT shares by way of placement, with CGS-CIMB Securities, the placement agent for both deals, to find purchasers on a best-efforts basis, the filing said. The vendor shares represent around 3.3 percent of GVT’s existing share capital, the filing said.

The proceeds of GVT’s placement will be used to build up its customer base and capacity, the filing said.

“Notwithstanding that the company has yet to fully utilise the proceeds from its initial public offering and placement exercise completed on 15 March 2021, the GVT placement is beneficial for the group as it will provide additional resources and funding for the group’s future strategic investments and/or acquisitions, and capital expenditures for growth of the group’s business,” GVT said in the statement.

GVT added the placement is also in line with the company’s plan to transfer its listing to SGX’s mainboard, as it will increase share trading liquidity, public float and shareholder count.

Around 40-45 percent of the proceeds are earmarked for mergers and acquisitions, joint ventures and partnerships, another 40-45 percent will be used to enhance operational and engineering capabilities and 10-20 percent will be used for general working capital, GVT said.

The proposed placement is not underwritten, and will have no offer document or prospectus, the filing said.

The placement price is a discount of around 7.8 percent to the volume weighted average price of S$1.236 for GVT’s shares on 31 August and 1 September, the filing said; the shares were halted at 9:35 a.m. SGT on 1 September.

The new shares represent around 8.2 percent of GVT’s existing share base, and will represent around 7.6 percent of the enlarged share capital if the maximum number of shares are issued, the filing said.

CGS-CIMB Securities will be paid between 2.5 percent to 3.0 percent of the placement proceeds, the filing said.

Once the proposed placements are completed, Metalbank plans to transfer its GVT shares to its shareholders, and afterward, Metalbank would cease to be a GVT shareholder, the filing said.