SINGAPORE - Mainboard-listed Darco Water Technologies said on Monday (Oct 23) it is raising at least S$19.6 million from a strategic investor via equity and debt.
The firm has entered an agreement to place out a minimum of 23,987,726 and a maximum of 30,251,151 new shares, subject to further corporate actions at 65 Singapore cents per share to strategic investor Wang Zhi, also known as Robert Wang.
Mr Wang is chairman of Hong Kong-incorporated water supply and wastewater treatment group, Future Investment Enterprise.
The placement shares represent about 29.5 per cent of the group's issued share capital.
The placement price represents a premium of about 15 per cent from the weighted average price of the group's shares of S$0.565 on Oct 20 - the full market day when the placement agreement was signed.
Mr Wang will also lend the firm S$4 million solely for the working capital of the firm's unit, Wuhan Kaidi Water Services.
Darco is using the net proceeds from the placement to finance the business expansion of the firm and its subsidiaries, improve its cash flow, increase working capital, and for general corporate purposes.