SINGAPORE - Boustead chairman and chief executive Wong Fong Fui now holds an 8 per cent stake in offshore oil and gas contractor Falcon Energy after buying 70 million shares at 2.8 cents per share through a private placement.

The placement price was set at a 3.704 per cent premium to Falcon's volume-weighted average trading price of 2.7 cents on May 7 and 8. The stock was not traded on Wednesday morning (May 16), but was bid at 3.8 cents and offered at 3.9 cents as at noon.

Mr Wong was identified as a potential investor in the ordinary course of business dealings and at corporate networking events, Falcon said. Boustead is an infrastructure engineering company.

Of the $1.96 million proceeds from the placement, Falcon will use just under half to pay the coupon on its existing term note programme. The rest of the proceeds will be used for working capital and for costs related to the placement.