SINGAPORE - CCM Group, a construction and property company listed on the Singapore Exchange Catalist board, will seek the approval of its shareholders in an extraordinary general meeting to raise new capital, change its name and diversify into information technology.
This comes after the group recently sold CCM Industrial, a wholly-owned subsidiary involved in construction activities in Singapore that had incurred major losses last year.
The group is planning to issue 12 rights shares at 0.3 cent each for every existing share and one bonus share for every rights share subscribed for. This will raise a minimum of $3.3 million in net proceeds for the group.
It is also seeking to change its name to Singapore eDevelopment Limited to reflect its expanded business activities including software and hardware development and investing in businesses providing IT-related services to end-users, service providers and other commercial users.
"Mobile internet, cloud computing and social media are increasingly prevalent for communications, e-commerce and gaming. We want to actively pursue the many opportunities in this field so as to enhance shareholder value more rapidly," said CCM's chief executive and executive director Chan Heng Fai.
"Our proposed new name, Singapore eDevelopment Limited, reflects this strategic direction," he added.
Mr Chan and his fully-owned company Hengfai Business Development have pledged to subscribe for their full pro rata entitlement of 1.02 billion rights shares and up to 178.7 million of excess rights shares, subject to availability.
Apart from IT investments, the company will use the proceeds of the rights issue for working capital, property development, investments and to discharge existing obligations or liabilities related to its previous construction business.