EMS Energy to raise funds of up to $14.8 million

SINGAPORE - Catalist-listed EMS Energy is proposing to raise up to $14.8 million in net proceeds through a one-for-one rights issue.

It wants to issue one rights share for each existing ordinary share at two cents each.

The rights issue will be renounceable and non-underwritten.

The firm, which provide engineering, customised equipment, contract manufacturing and packaging solutions, is building a new waterfront facility in Tuas.

The facility is part of its strategy to pursue higher-value engineering solutions for the offshore and oil and gas sector.

Its issued share capital base will double, up to 1.48 billion shares from 740.35 million shares, if the rights issue is fully subscribed.

The firm's directors believe that the proposed rights issue will strengthen the balance sheet and provide flexibility as the group pursues its growth strategies.

EMS plans to take on larger engineering projects and various services such as painting, blasting and machining, which are outsourced, will eventually be housed under one roof at the new facility.

A 23,238 sq m parcel of land in Tuas has been leased by EMS from Jurong Town Corporation for 16 years and eight months, which began on May 1.