Oxley to raise $78.1m by placing out 156.8m shares

Oxley Holdings has agreed to place out 156.8 million new shares at 51 cents apiece to raise $78.1 million.

The issue price represents a discount of about 8.8 per cent to the volume-weighted average price of 55.9 cents for trades done on the Singapore Exchange (SGX) on Wednesday.

"Due to significant interest from institutional funds, the placement was upsized from the original 98 million shares to 156.8 million shares to cater for increased demand," it added.

Oxley said that the placement will contribute towards broadening the shareholder base and improving trading liquidity. The proceeds will be used for working capital purposes, which include funding project development.

"The placement attracted prominent investors, which demonstrates the strong confidence investors have in our long-term prospects. In view of the prevailing market conditions, especially with some signs of recovery in the Singapore property market, the funds raised will put us in a good position to seize opportunities," said executive chairman and chief executive officer Ching Chiat Kwong.

"Over the last 12 months, we were successful in acquiring, through joint venture companies, a few properties such as ex-HUDC estates Rio Casa and Serangoon Ville, to boost our land bank for future redevelopment," he added.

The sale agents are DBS Bank, Credit Suisse (Singapore) and Maybank Kim Eng Securities.

A version of this article appeared in the print edition of The Straits Times on March 17, 2018, with the headline 'Oxley to raise $78.1m by placing out 156.8m shares'. Subscribe