CSE Global 544 has raised a total gross proceeds of $24 million from its share placement of 60 million new ordinary shares, attracting strong demand from institutional and accredited investors.
The issue price per share for the placement shares was 40 cents, representing a discount of approximately 6.6% to the volume weighted average price of 42.81 cents per share on March 13, the last full market day preceding the date the placement agreement for the share placement was signed.
Including the placement shares, CSE Global’s share base has been enlarged by 9.71% to approximately 678.11 million shares.
Based on the unaudited financial statements of the group for the FY2023 ended Dec 31, 2023, its pro forma net tangible assets per share as at end-2023 will increase from 19.96 cents to 21.62 cents, and its earnings per share will be diluted from 3.66 cents to 3.34 Singapore cents.
CEO Lim Boon Kheng says: “We are heartened by the interest in the share placement and thankful to have the strong support from investors, which illustrates confidence in CSE Global’s growth potential. We see opportunities arising on the back of megatrends such as urbanisation, electrification and decarbonisation.”
“The proceeds raised will strengthen our balance sheet, enabling us to leverage these trends and pursue further inorganic growth through strategic acquisitions or investments primarily in our core markets, including the US, Australia and New Zealand,” he adds.
The listing of the placement shares on the SGX-ST is expected to commence at 9.00 am on March 26.
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The placement shares are eligible for the final one-tier tax-exempt cash dividend of 1.5 cents per share recommended by the CSE directors, subject to approval by shareholders at the group’s annual general meeting on April 29.
Maybank Securities acted as sole placement agent for the share placement.
Shares in CSE Global closed unchanged at 43.5 cents on March 25.
