Mainboard-listed China Everbright Water Limited said on Tuesday (Jan 20) that it is placing out 120.7 million new shares at S$0.94 each to raise $113.4 million for growth and expansion purposes.
The water treatment firm has entered into agreements with International Finance Corporation (IFC) and Dalvey Asset Holding (DAH) who will subscribe to the new shares. The shares represent 4.9 per cent of China Everbright Water's existing and paid-up share capital, and 4.6 per cent of its enlarged issued and paid-up share capital.
The price was at a discount of 9.4 per cent to the weighted average price of $1.0369 per share when the firm was last traded.
The company, which debuted on the Singapore Exchange last month, is 78 per cent owned by Hong Kong-listed China Everbright International, which is linked to China's state-owned Everbright Group.
China Everbright International completed a $1.2 billion reverse takeover of Singapore-listed water treatment firm HanKore Environment Tech. The combined group owns 41 water treatment projects with a total capacity of 3.5 million tonnes of water a day.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. It has previously extended a loan to a subsidiary of China Everbright International. IFC will subscribe for 49.7 million shares.
DAH, wholly-owned by a fund of private equity firm RRJ Capital, will subscribe for 71 million shares. RRJ is a minority shareholder of China Everbright Water. RRJ's co-chairman and co-chief executive officer Charles Ong was once chief investment officer and chief strategy officer at Singapore government-owned investment company Temasek Holdings.
China Everbright Water has applied for its trading halt to be lifted on Tuesday (Jan 20).