Singapore eDevelopment to place $7m worth of shares to CEO

It’s bidding to improve its balance sheet.

Singapore eDevelopment (SED) is gearing to place $7m worth of shares to its current CEO and largest shareholder Chan Heng Fai in a bid to improve its balance sheet and working capital.

According to the company’s media release, SED intends to issue 117 million new ordinary shares at $0.06 each, at a premium of approximately 104% over the volume weighted average price traded on 29 January 2016.

About $6.42m of the $7m proceeds will be channeled towards the redemption of $5m worth of redeemable exchange notes including accrued interest payable and redemption premium.

SED stated that it will use the remaining net proceeds from the placement for its general working capital. Moreover, the company believes that the placement will improve its balance sheet at a time when its US property projects are underway.