Ever Glory United Launches S\$17 Million Share Placement to Strengthen Group Finances and Fund Strategic Acquisition

Ever Glory United Holdings Limited has unveiled plans for a significant fundraising exercise that could inject up to S\$17,050,000 into the company. This move, announced on 25 August 2025, involves the proposed placement of up to 31,000,000 new ordinary shares at S\$0.55 per share, representing approximately 8.92% of the current issued share capital and 8.19% of the enlarged capital base, assuming full subscription.

Key Points for Investors

• Share Placement Details: The placement is not underwritten and will be managed by CGS International Securities Singapore Pte. Ltd. on a best-efforts basis. The offer is targeted exclusively at institutional and accredited investors under Singapore’s Securities and Futures Act, meaning no public prospectus will be issued.
• Shareholder Dilution: Upon completion, existing shareholders will see their holdings diluted by up to 8.19% (post-placement).
• Pricing: The placement price of S\$0.55 per share represents a 7.72% discount to the average market price on 22 August 2025, providing an attractive entry point for new investors but potentially pressuring the share price in the short term.
• Proceeds Utilisation: Net proceeds after expenses (estimated at S\$655,550) will stand at approximately S\$16.39 million, with 50% earmarked for general working capital and 50% for partial payment of the acquisition of Guthrie Engineering (S) Pte. Ltd.
• No Change in Control: The placement will not result in any new substantial shareholders or transfer of controlling interest, as confirmed by the placement agent and company.
• Financial Impact: The fundraising will increase net tangible assets (NTA) per share from 7.01 Singapore cents to 12.12 cents, although earnings per share (EPS) will decrease, reflecting dilution: EPS drops from 3.48 cents to 2.73 cents.
• Mandate and Regulatory Compliance: The share issuance is within the company’s general mandate approved by shareholders at the April 2025 AGM, and an application will be made for listing the new shares on SGX Catalist.
• No Insider Participation: Directors and substantial shareholders will not participate in the placement, mitigating concerns about related party transactions.

Why This Matters: Potential Price Sensitivity & Shareholder Impact

This announcement is likely to be market-moving due to several factors:

• Large Placement Volume and Discount Pricing: The introduction of 31 million new shares at a discount could exert downward pressure on the market price, especially in the short term.
• Strategic Use of Funds: Half of the proceeds will be used to fund the acquisition of Guthrie Engineering, a move that could be transformative for Ever Glory United’s business profile and future earnings. The other half will strengthen working capital, improving the company’s financial resilience and ability to pursue growth opportunities.
• Financial Ratios: While NTA per share increases, EPS dilution may concern some investors, but the strengthened balance sheet and improved liquidity could support long-term value.
• Transparency and Governance: The company will provide regular updates on the use of proceeds, with breakdowns in financial reports, ensuring shareholders are kept informed.

Important Details and Timeline

• Completion of the placement is subject to regulatory approvals and conditions outlined in the placement agreement, including SGX Catalist listing approval.
• If conditions are not met, the placement agent may terminate the agreement without liability (except for costs and expenses).
• The agreement and related documents will be available for inspection at the company’s registered office for three months following the announcement.
• The company will continue to update shareholders on material developments related to the placement.

Conclusion: What Should Investors Do?

The proposed placement represents a major strategic move for Ever Glory United. While there is temporary dilution and potential short-term price weakness, the company is positioning itself for growth and improved operational flexibility. Investors should monitor subsequent announcements, especially around the completion timeline, regulatory approvals, and deployment of funds into the Guthrie Engineering acquisition and working capital.

Shareholders and potential investors are advised to exercise caution when trading in Ever Glory United shares, as the placement is subject to conditions and may impact share price volatility in the near term.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisors or conduct their own research before making investment decisions. The placement is subject to regulatory and other conditions, and the information herein may change based on future announcements by Ever Glory United Holdings Limited.

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