Viking Offshore proposes private placement of around 11M new shares

Viking Offshore and Marine has proposed a private placement of 10.99 million new shares at S$0.0801 each to Xiang Xiping to raise around S$880,000. 

“The company is undertaking the proposed placement to raise funds and strengthen its financial and working capital position,” Viking Offshore said in the statement filed to SGX. 

“The proposed placement will improve the group’s cash flows to meet anticipated general working capital requirements. The company hopes to strengthen its balance sheet, capital structure and enhance the group’s financial flexibility,” the company said.

The issue price is an around 8.58 percent discount to the volume weighted average price (VWAP) of S$0.08762 a share for trades on 17 January, the last full market trading day before the agreement was signed, Viking Offshore said in a filing to SGX. 

Xiang Xiping, a Chinese national, is an entrepreneur with more than 10 years’ experience in the wellness industry, and she hasn’t participated in any previous share placement by the company, Viking Offshore said, adding she doesn’t currently hold any shares, warrants or other company securities, either directly or indirectly.

“The placee has expressed keen interest to invest in the group in view of the group’s current business developments and future plans,” and she is subscribing to the shares purely for investment purposes, Viking Offshore said. 

After the deal, she will hold around 1.96 percent of the enlarged share capital, Viking Offshore said.

The deal has no placement agent, and no introducer fee or commission is to be paid, the filing said. Xiang Xiping was introduced to the company by Executive Director Ong Swee Sin, the filing said.