Harvest Private Wealth fund to participate in Intraco equity fundraising

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Intraco Ltd. has entered into subscription agreements to issue a total of 10 million new shares to eight investors, including Harvest Private Wealth Thematic Fund SPC, at S$0.45 each to raise S$4.5 million, the company said in a filing to SGX Friday.

The issue price is a discount of around 3.2 percent to the volume weighted average price (VWAP) of S$0.465 for all trades on 22 December, Intraco said. The issuance will represent around 8.86 percent of Intraco’s enlarged share capital post-issuance, the filing said.

“The subscription is beneficial to the group as it will strengthen its financial and cash position and enlarge its capital base to fund the growth of its existing and new businesses and to pursue new business opportunities as and when they arise,” Intraco said in the statement. That includes financing its deal to acquire MHC Digital, announced earlier this month.

Harvest Advisors Investment Management will acquire 1.5 million of the subscription shares from Intraco, for the Harvest Private Wealth Thematic Fund SPC, the filing said.

The Harvest Private Wealth Thematic Fund SPC is a segregated portfolio company incorporated in the Cayman Islands and operating as an investment fund seeking returns via thematic investment strategies; it is managed by H Partners Private Wealth Management (Singapore), which is ultimately controlled by Harvest Fund Management.

Harvest Private Wealth Thematic Fund SPC has more than 50 investors, mainly Asian and Southeast Asian high net worth individuals, corporates and institutions, with assets under management of around US$140 million as of end-April, according to a prospectus unrelated to Intraco.

Harvest Advisors Investment Management is a wholly owned subsidiary of Harvest Fund Management, founded in Beijing in 1999. Harvest Fund Management, one of the ten earliest established fund management companies in Mainland China, has around 1 trillion yuan under management, the prospectus said.

Harvest Group has around US$200 billion in assets under management, and provides clients with equity, fixed income, multi-asset and alternative strategies, as well as specialist investment services through segregated accounts and investment funds to pension funds, financial institutions, sovereign wealth funds, family offices and ultra-high net worth individuals, according to its website.

Harvest Advisors Investment Management has a Capital Markets Services license in Singapore and is regulated by the Monetary Authority of Singapore.

Other investors in the subscription deal include Singapore-based investment holding companies Alpha Securities and Guthrie Venture, which will acquire 2 million shares each, the filing said.

Alpha Securities is a subsidiary of GKG Investment Holdings, which is the largest shareholder of G.K. Goh Holdings.

Teo Yi-Dar, who is the chairman of Sin Heng Heavy Machinery and HG Metal Manufacturing, will acquire 1.5 million shares of Intraco in the subscription, the filing said.

Cluny Capital, a British Virgin Islands-incorporated investment holding company, will subscribe for 1 million shares, the filing said.

Wong Fong Fui, chairman and CEO of Boustead Singapore, will subscribe for 1 million shares, Intraco said.

Simmic Investments, a Singapore-incorporated investment company, will subscribe for 500,000 shares, the filing said. Mak Lye Mun, the chairman of Intraco, is an independent director at SC Global Developments, which wholly owns Simmic Investments, the filing said.

Yeo Boon Chye, a senior partner and head of assurance at accountancy Foo Kon Tan LLP, will subscribe for 500,000 shares, the filing said.

Intraco, which was founded in 1968 by the Singapore government as a trading arm to secure raw materials, mainly trades in plastic resins, provides passive fire-protection services, provides mobile-radio infrastructure management services and provides crane rental services, according to its website.