ICP places $3.9m of shares at 0.85 cent each to private equity firm CMIA

SINGAPORE - Hotel management company ICP has placed $3.9 million of new shares representing a 14.78 per cent post-deal stake to private equity firm CMIA Capital Partners.

The 460 million new ICP shares were priced 0.85 cent apiece, which was a discount of about 3.41 per cent to the stock's 0.88 cent volume weighted average price on Jan 10. The shares traded at 0.8 cent as at 9.21am on Monday, down by 11.1 per cent or 0.1 cent.

ICP said that the proceeds will be used for general corporate purposes.

CMIA is a private equity firm that is focused on control and growth capital investments in CHina and South-east Asia. It manages Yi Ming China Fund I LP, in which ICP had made a US$1.0 million capital commitment in November 2013. As of Monday, ICP had invested about US$0.9 million in Yi Ming China Fund I.

The placement will dilute ICP non-executive chairman Aw Cheok Huat's stake to 20.56 per cent from 24.14 per cent.