Construction firm CCM Group plans rights and bonus issues

SINGAPORE - CCM Group, a Singapore Exchange Catalist-listed construction company, is planning to raise up to $143.5 million through a rights issue and a bonus issue.

It will issue up to 28.75 billion shares via an eight-for-one rights issue and another 28.75 billion bonus shares. Shareholders subscribing to the rights issue will get one bonus share for every rights share.

The proceeds will be used for general working capital, the group's Singapore construction projects, repayment of liabilities and property development opportunities overseas, especially in the United States and Australia, CCM said on Tuesday.

CCM executive director Chan Heng Fai and his company Hengfai Business Development will commit to subscribe for their full entitlement of 680.88 million rights shares and up to 39.12 million rights shares, subject to availability.

The rights shares will be priced at 0.5 cent apiece, a discount of 54.5 per cent to CCM's closing price of 1.1 cent per share on Apr 3. The discount is 77.3 per cent after taking the bonus shares - with a corresponding issue price of 0.25 cent apiece - into account.

CCM reported a net loss of $22.4 million for the financial year ended Dec 31 last year, wider than its $1.9 million loss the previous year. It said this was mainly due to its wholly-owned subsidiary, CCM Industrial.

The group also said on Mar 20 that its contract to build a 32-storey building along at 70 Shenton Way had been terminated and it has to pay $4.7 million for a performance bond.

A week later, CCM's property development unit CCM Property announced formal offers for four land sites in Perth, totalling A$2.175 million (S$2.5 million). These sites are to be developed into townhouses and luxury apartments for sale to Australians and overseas investors.