HG Metal Manufacturing Secures SGX-ST Approval for Major Rights Issue
HG Metal Manufacturing Secures SGX-ST Approval for Major Rights Issue
HG Metal Manufacturing Limited has announced a significant development that could potentially impact its share price. The Company has received approval in principle from the Singapore Exchange Securities Trading Limited (SGX-ST) for its proposed renounceable non-underwritten rights issue.
Key Points
- The rights issue will comprise up to 74,254,237 new ordinary shares at an issue price of S\$0.266 per Rights Share.
- The rights issue is based on 10 Rights Shares for every 27 existing ordinary shares.
- The total fundraise amount is set at approximately S\$19.35 million.
Shareholder Information
Shareholders should note that this rights issue is designed to provide an opportunity to participate further in the equity of the Company. The proceeds will be utilized for core business expansion, general working capital purposes, and strategic investments or acquisitions.
The approval is subject to the Company complying with SGX-ST’s listing requirements and submitting various written undertakings and confirmations, ensuring responsible use and allocation of raised funds.
Notably, Green Esteel, who has provided an Irrevocable Undertaking, will play a pivotal role as a key strategic investor, having already become the largest shareholder through previous placements.
Rationale and Use of Proceeds
The Company aims to leverage the synergies with Green Esteel to expand operational capacity, open new sales offices overseas, and increase inventory size. The rights issue is intended to fund these new and current expansion plans, which were not anticipated during the earlier placement exercises.
The decision for this rights issue follows the completion of significant share placements to Green Esteel and other key investors in 2023 and 2024, which have already garnered substantial capital.
Executive Director and CEO Xiao Xia emphasizes that this rights issue will enable the Company to seize strategic business opportunities and grow its core operations, enhancing overall shareholder value.
Disclaimer
This announcement is for information only and does not constitute an offer or invitation to sell, issue, or subscribe for any Rights Shares. Shareholders should base any decision to acquire Rights Shares on the offer information statement to be lodged with the Monetary Authority of Singapore.
The distribution of this announcement to jurisdictions outside Singapore may be restricted by law. The Company assumes no responsibility for any violation by any person of such restrictions.
