Tritech to raise $1m via share placement

SINGAPORE - Tritech Group is raising $1 million in a share placement for 34.5 million shares at an issue price of 2.9 Singapore cents apiece. The net proceeds of $950,000 will be used for working capital, it said on Sunday night (July 7).

The exercise will see four individuals introduced by current private investor, Tan Chin Tuan, subscribing for shares in the Catalist-listed group. Ng Siew Kee and Goh Jee Mui will each subscribe for 12.1 million shares for $350,000, tallying to 1.28 per cent each of the group's enlarged share capital each.

Seah Siu Guat and Tan Ming Boon will each subscribe for 5.2 million shares for $150,000, amounting to 0.55 per cent each of the group's enlarged share capital each.

Meanwhile, Mr Tan's estimated $70,000 introducer fee will be paid in 2.4 million new shares at the placement price of 2.9 cents apiece. His shares will represent around 0.26 per cent of the enlarged share capital. Mr Tan currently holds 59,000 shares in the group, or 0.0066 per cent.

The placement price of 2.9 cents represents an approximate 5.8 per cent discount to the volume weighted market price of 3.08 cents for each share, based on the trades done on July 5, the full market day before the placement agreement was signed.

When the placement concludes, Tritech's issue and paid-up share capital will increase by 0.4 per cent to $78.7 million comprising 944.9 million shares, from $77.7 million comprising 908.0 million shares previously.

Net placement proceeds will amount to $950,000, and will be used for working capital requirements arising from the growth of the firm's water and environment business. The proceeds may also be placed as deposits with financial institutions or used for short-term investment as the directors may deem fit, Tritech added.

Tritech shares were trading at three cents on Monday as at 9.35am, down 0.1 cent or 3.2 per cent.