BEARINGS and seals supplier Raffles United Holdings requested a trading halt on Wednesday morning, pending the announcement that it has received in-principle approval from the Singapore bourse for the listing of up to 234 million new shares for a rights issue at S$0.05 apiece, on the basis of one rights share for every existing share.
Raffles United added that a circular for the purpose of seeking shareholders' approval for the rights issue, along with a notice of an extraordinary general meeting to be convened will be despatched to shareholders in due course. Under the maximum subscription scenario where all 234 million rights shares are fully subscribed, Ms Teo will own twice the amount of shares, representing 65.8 per cent of the firm's enlarged share capital.
Net proceeds from the rights issue is expected to range from S$7.6 million to S$11.6 million, after deducting S$0.1 million for estimated professional fees and related expenses. Raffles United intends to use the majority of these proceeds to repay bank borrowings, with the remainder to finance working capital requirements.