Maxi-Cash Financial Services has proposed a placement of up to 32 million new shares at S$0.162 each to raise up to S$5.18 million via an agreement with placement agent SAC Capital, the pawnshop operator said in a filing to SGX Monday.
The company plans to use the net proceeds for working capital purposes to fund the expansion of its pawnshop network and secured lending business in the region, the filing said, with the company adding it wanted a “buffer” for its future working capital needs.
“The company hopes to strengthen its balance sheet, capital structure and enhance the group’s financial flexibility through the proposed placement. The proposed placement will also broaden the company’s shareholders base thereby improve trading liquidity of the company’s shares,” Maxi-Cash said in the statement.
The placement price is a discount of around 7.85 percent to the volume weighted average price of S$0.1758 a share on 2 December, the last full market day before the agreement was signed, the filing said.
The new shares are around 3.09 percent of Maxi-Cash’s existing share capital, and will represent around 3 percent of the enlarged post-placement share capital, the filing said.
The new shares will not be placed with anyone who is a director or substantial shareholder of the company, Maxi-Cash said.
In exchange for procuring buyers for the placement shares, the placement agent, SAC Capital, will be paid a commission of 2.15 percent of the placement price of each share it has procured a buyer for, the filing said.
The placement is not underwritten, the filing said.