Raffles Infrastructure has entered a subscription agreement with Yayuan Ltd. to issue 10 million new shares at S$0.20 each to raise S$2 million, the company said in a filing to SGX late Wednesday.
The issue price is a premium to the volume weighted average price per share of S$0.18 for trades on Tuesday, the filing said.
The new shares represent around 14.71 percent of the existing shares and will represent around 12.83 percent of the enlarged share capital, Raffles Infrastructure said.
Hong Kong-based Yayuan has a portfolio of businesses in fast-moving consumer goods, property and fintech across Asia, Africa and Central America, the filing said, adding Yayuan’s sole shareholder is Vulcan Zhao, a Chinese national and entrepreneur.
Zhao, who was introduced to the company via business networking, is interested in subscribing to the shares for his own investment purposes, the filing said.
Raffles Infrastructure said the subscription is beneficial as the company is seeking new revenue streams in the medical and/or digital technology infrastructure sectors.
“The directors are also of the view that having the subscriber as a shareholder may potentially open up more opportunities for the company in the medical and/or digital technology infrastructure sectors, and may potentially provide new avenues of revenue for the group,” Raffles Infrastructure said.
Up to 80 percent of the net proceeds are slated for establishing new revenue streams, and up to 20 percent would be earmarked for working capital purposes, the filing said.
Due to an existing general mandate, Raffles Infrastructure said it won’t be required to seek shareholder approval for the placement.