Fuxing China Group Limited Completes Placement of 3,000,000 New Ordinary Shares at S\$0.415 Each

Key Points for Investors

• Completion of Share Placement: Fuxing China Group Limited has successfully completed the placement of 3,000,000 new fully paid-up ordinary shares at an issue price of S\$0.415 per share, raising a total gross consideration of S\$1,245,000.
• Approval from SGX-ST: The Company received approval in-principle from the Singapore Exchange Securities Trading Limited (SGX-ST) for the listing and quotation of these Placement Shares on the Mainboard.
• Listing and Trading Date: The Placement Shares are expected to be listed and quoted on the SGX-ST Mainboard on or around 13 November 2025, with trading set to commence from 9:00 a.m. on the same day.
• Share Placement Agent: SAC Capital Private Limited acted as the Placement Agent for this transaction.
• Ranking of New Shares: The Placement Shares will rank pari passu in all respects with existing shares at the time of completion. However, they will not be entitled to any dividends, rights, allotments, or other distributions for which the record date falls on or before the completion date.

Detailed Analysis and Potential Share Price Impact

The successful placement of 3,000,000 new shares at S\$0.415 each represents a significant capital-raising effort by Fuxing China Group Limited. The aggregate proceeds of up to S\$1,245,000 will strengthen the company’s balance sheet and potentially fund business expansion or strategic initiatives.

For existing shareholders, the placement leads to a dilution of shareholding but also demonstrates the company’s ability to attract investor interest at a fixed price. The Placement Shares are free from all claims, pledges, mortgages, charges, liens, and encumbrances, which should instill confidence in new investors regarding the clean issuance of these shares.

It is important to note that the Placement Shares will not be entitled to dividends or other distributions if the record date is on or before the completion date. This detail is critical for investors looking for immediate yield from these new shares.

Shareholder Considerations & Price Sensitivity

• Potential Share Price Movement: The placement price of S\$0.415 per share could act as a short-term price anchor for the stock. Large placements may put pressure on the share price if there is insufficient demand, but can provide opportunities for liquidity and enhance the company’s financial position.
• Dilution Effect: Issuing 3,000,000 new shares will dilute existing shareholders’ percentage ownership, but could be offset by the company’s strengthened capital base and potential for growth.
• Market Confidence: The swift completion of the placement and the secured approval from SGX-ST may be viewed positively by the market, indicating regulatory compliance and financial stability.
• Trading Start Date: Investors should be aware that the new shares will start trading on or around 13 November 2025, which could see increased trading volume and volatility on that day.
• Director’s Responsibility: The Board has collectively and individually confirmed the accuracy and completeness of the information disclosed, reassuring investors about the transparency of this placement.

Important Caution for Investors

Shareholders and potential investors are reminded to exercise caution when dealing in Fuxing China Group Limited shares. If in doubt, they are encouraged to consult their stockbrokers, bank managers, solicitors, accountants, or other professional advisers before making any investment decisions.

Conclusion

The successful placement marks an important milestone for Fuxing China Group Limited, providing fresh capital and enhancing market confidence. However, investors should closely monitor the stock for potential volatility as the new shares begin trading and assess the longer-term impact of the placement on shareholder value.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should perform their own due diligence and consult with professional advisers before making investment decisions. The writer is not responsible for any losses or damages arising from the use of this information.

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