Koh Brothers Eco Engineering proposes S$27.6 million rights issue
The company plans to use the net proceeds for working capital, capital expenditure and/or repayment of bank borrowings.
Koh Brothers Eco Engineering Limited has proposed a rights issue offering up to 563.6 million new shares at S$0.049 each. The company expects to raise approximately S$27.1 million after expenses if the offer is fully subscribed, according to its bourse filing.
The proposed offer is renounceable and underwritten. Eligible shareholders would be entitled to subscribe for one new share for every five shares they already hold. At full subscription, gross proceeds are expected to reach approximately S$27.6 million, with expenses estimated at S$0.5 million.
The group said the net funds would support working capital, including operating and administrative costs, as well as payments to subcontractors and suppliers on its construction projects. It also intends to allocate funds to capital expenditure and/or repayment of bank borrowings.
No record date has been set to establish which shareholders qualify to participate. Shareholders will not receive fractional entitlements under the proposed issue.
