BUSINESSMAN and angel investor Koh Boon Hwee has bought a stake in newly listed rubber processing firm Halcyon Agri Corporation.
Credence Partners, a fund led by Mr Koh who is a former chairman of DBS Bank and Singapore Airlines, will take up a $20.7 million share placement in Halcyon, which listed on the Catalist board on Feb 1.
Credence Partners will pay 51.75 cents each for 40 million new Halcyon shares, giving it a 12.12 per cent stake in the firm. The issue price is a discount of 9.39 per cent from the weighted average price per share on May 14, the last full trading day before the agreement was inked.
Credence was founded in 2006 by Mr Koh, Mr Tan Chow Boon and Mr Seow Kiat Wang.
It provides capital for firms in manufacturing, information communications technologies, services, logistics and consumer sectors across the region.
Mr Koh, the firm's managing partner and investment committee chairman, told The Straits Times by e-mail that his team liked Halcyon's business sector and management. "Halcyon Agri is in the processing of rubber used primarily for manufacturing tyres, which has steady growth rate," he said.