Shipbuilder Yangzijiang to raise $208.8m via private placement at $1.53 per share

SINGAPORE - Mainboard-listed Chinese shipbuilder Yangzijiang Shipbuilding said in a pre-market filing on Thursday (Aug 31) that it will raise about S$208.8 million by placing out 137 million new shares at S$1.53 each to institutional and other investors.

The placement price represents a discount of about 4.07 per cent to the volume weighted average price of S$1.5949 for trades done for the full market day of Aug 29, 2017.

The placement shares represent approximately 3.6 per cent of the company's existing share capital, and about 3.5 per cent of its enlarged share capital.

The company said it intends to use up to 50 per cent of the net proceeds to fund new investments and business expansion through acquisitions, joint ventures or strategic alliances, with the remainder to be used for working capital and general corporate purposes of the group, including the repayment of bank borrowings and loans.