Ever Glory Attracts Big Institutional Money: S\$17 Million Placement Fuels Growth and M&A Ambitions

Key Points:

• Ever Glory United Holdings Limited successfully raises S\$17.05 million via a private placement of 31 million new shares at S\$0.55 each, representing a 7.72% discount to the previous market price.
• Strong demand from top-tier institutional and accredited investors, including ICHAM Master Fund, Amova Asset Management, Lion Global Investors, Ginko-AGT Global Growth Fund, Asdew Acquisitions, and Azure Capital.
• Funds will be used for general working capital and to help pay for the acquisition of Guthrie Engineering (S) Pte. Ltd.
• Management sees significant growth opportunities ahead, especially with the acquisition of Guthrie Engineering, amid a robust outlook for Singapore’s built environment sector.
• Placement handled by CGS International Securities Singapore as sole placement agent.

In-Depth Analysis for Retail Investors

Ever Glory United Holdings Limited (“Ever Glory”), a Singapore-based provider of mechanical and electrical (M&E) engineering services, has completed a major fundraising exercise, securing S\$17.05 million through the placement of 31 million new shares. The shares were issued at S\$0.55 each, a 7.72% discount to the volume weighted average price of S\$0.596 from the previous full trading day. This pricing strategy appears designed to attract significant investor interest, despite the discount possibly exerting short-term downward pressure on the stock.

What stands out is the robust demand from prominent institutional and accredited investors. Key participants such as ICHAM Master Fund, Amova Asset Management, Lion Global Investors, Ginko-AGT Global Growth Fund, Asdew Acquisitions, and Azure Capital bring considerable credibility. Their participation suggests a high level of confidence in Ever Glory’s business fundamentals and future growth trajectory.

According to Mr Vincent Toe, Co-founder of ICH Group, the group’s strategy is to invest in assets with strong fundamentals and clear catalysts that the market has yet to fully appreciate. He believes Ever Glory fits this profile, highlighting the company’s solid business model and its involvement in Singapore’s major infrastructure and development projects.

For existing and potential shareholders, the use of proceeds is a crucial detail. Ever Glory will deploy the funds for general working capital and, importantly, to partly pay for its acquisition of Guthrie Engineering (S) Pte. Ltd. This acquisition is expected to strengthen Ever Glory’s capabilities and positioning within the M&E engineering sector, potentially unlocking new revenue streams and synergies.

Mr Xu Ruibing, Executive Director and CEO of Ever Glory, expressed his gratitude towards investors for their overwhelming support. He emphasized that the placement’s strong response validates the company’s business model and long-term value creation strategy. With the built environment sector in Singapore projected to remain robust over the next 5 to 10 years, Ever Glory is positioning itself to benefit from this growth—particularly with Guthrie Engineering now under its wing.

What Should Shareholders Watch?

• Potential Share Price Volatility: The placement was priced at a discount, which could create some short-term pressure on the stock. However, the entry of reputable institutional investors may provide support and signal longer-term confidence.
• Acquisition Impact: The partial payment for Guthrie Engineering’s acquisition is a major development. If successfully integrated, this could be a significant earnings and capability enhancer for Ever Glory.
• Growth Outlook: Management’s bullish stance on the M&E sector and the company’s lead role in upcoming infrastructure projects are signals of sustained growth potential.

The placement was managed by CGS International Securities Singapore as the sole placement agent, and the press release has been reviewed by the company’s sponsor, Novus Corporate Finance. However, the Singapore Exchange has not examined or approved the content.

Conclusion

This placement is a potential game-changer for Ever Glory, strengthening its financial position, enabling strategic acquisitions, and attracting heavyweight investors. Retail investors should closely monitor how the Guthrie Engineering acquisition unfolds and whether management’s growth projections materialize, as these will likely influence Ever Glory’s share price trajectory in the coming quarters.

Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a licensed financial adviser before making any investment decisions. The Singapore Exchange and the company’s sponsor have not reviewed or approved these statements.

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