SINGAPORE - Oxley Holdings has entered into a placement agreement for the issue of 156.8 million new shares at S$0.51 apiece to raise S$78.1 million.
The issue price represents a discount of about 8.8 per cent to the volume-weighted average price of S$0.559 for trades done on the Singapore Exchange (SGX) on March 14, the property group said in a filing with the SGX on Friday morning (March 16).
"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 estimated net proceeds from the placement of about S$78.1million will be used for working capital purposes, which includes funding project development.
Said its executive chairman and chief executive officer Ching Chiat Kwong: "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.
"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."
The agents for the sale are DBS Bank, Credit Suisse (Singapore) and Maybank Kim Eng Securities.
Oxley shares last traded at S$0.555 on March 14 before being halted pending the announcement of the share placement agreement. Following the announcement, it has requested the lifting of the trading halt.