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Singapore eDevelopment raises S$40.6 million to propel its growth

Zafirah Salim | Sept. 18, 2014
This funding will be used to boost the company’s growth through international property development and information technology.

SGX Catalist-listed Singapore eDevelopment Ltd (SeD) announced today (September 18, 2014) that it has raised S$40.6 million in net proceeds from a major Rights Issue as part of a strategy to propel corporate recovery through international property development and information technology.

SeD said its proposal to issue 12 Rights Shares at S$0.30 each for every existing share held, and one Bonus Share for every Rights Share subscribed for, recorded acceptances of 7.8 billion Rights Shares (or 52.9 percent of the available Rights Shares) and 6.2 billion of excess rights shares (or 41.9 percent).

The total of 14 billion Rights Shares represents approximately 94.9 percent of total Rights Shares available for subscription.

Following the completion of the Rights Issue and the issue of Bonus Shares, the issued share capital base of SeD will enlarge from S$1.23 billion to S$28.53 billion.

Net proceeds of approximately S$40.6 million - after deducting expenses of S$0.3 million - will be used to discharge existing obligations and redeem liabilities of its legacy Singapore construction business disposed in May 2014; explore and invest in new property development opportunities and IT businesses; invest in its investment business; and for general working capital.

SeD's single largest shareholder, Heng Fai Business Development Pte Ltd, has subscribed for their full undertakings of 1.2 billion Rights Shares, including excess applications, for which they will receive another 1.2 billion Bonus Shares.

Chan, owner of Heng Fai Business Development Pte Ltd, and also SeD's CEO and Executive Director, said, "The Rights Issue has been a success, with total acceptances of 94.9 percent and net proceeds raised of about S$41 million. The acceptances rate underscores the faith that shareholders have in our two engines of growth - international property development and IT. "

"We now have a stronger balance sheet to pursue corporate recovery with confidence. We are determined to execute our twin engine strategy successfully so as to enhance shareholder value rapidly," he added.

Trading of the Rights and Bonus shares is expected to commence on September 22, 2014.

 

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