Mooreast raises $6m from fully subscribed placement

New shares account for 14.65% of its enlarged capital. 

Mooreast Holdings Ltd has completed a private placement of 44.45 million new ordinary shares, raising gross proceeds of approximately $6m.

The placement shares were issued at $0.135 apiece, according to a bourse filing.

Net proceeds of about $5.8m, after deducting estimated fees and expenses, will be used entirely for the group’s ongoing projects and working capital.

The placement price represents a discount of about 2.03% to the volume-weighted average price of $0.1378 for trades done on the SGX-ST on 22 May, the last full market day before the company called a trading halt on 25 May.

The newly issued shares account for approximately 14.65% of Mooreast’s enlarged issued and paid-up share capital, excluding treasury shares, of 303.45 million shares.

The group said the placement was fully subscribed. Subscribers included Amova Asset Management and Lion Global Investors, which were approved under the Monetary Authority of Singapore’s Equity Market Development Programme.

Other subscribers included Asdew Acquisitions and ICH Synergrowth Fund.

ZICO Capital acted as placement agent, whilst Maybank Securities was appointed as sub-placement agent.