GSH Corporation Limited Announces Significant Updates on Use of Proceeds and Interested Person Transactions

Overview

GSH Corporation Limited has released an important update regarding the utilisation of funds from its recent Proposed Subscription, as well as the latest figures on Interested Person Transactions (IPTs) for the financial year ending 31 December 2025. This announcement provides crucial information for shareholders regarding capital allocation and related party transactions, both of which can have implications for the company’s financial health and share price.

Key Highlights

• Total net proceeds from the Proposed Subscription: S\$111.7 million after deducting approximately S\$0.2 million in fees and expenses.
• Funds Utilised: As of 25 November 2025, S\$76.3 million has been utilised:
  • S\$75.8 million was used for repayment of New Shareholders’ Loans.
  • S\$0.5 million was used for repayment of other loans and borrowings.
• Intended Use of Proceeds: The allocation is consistent with the intended use stated in the shareholder circular.
• Remaining Proceeds: By inference, approximately S\$35.4 million remains unutilised, which could be deployed for future strategic initiatives or further debt reduction.

Update on Interested Person Transactions (IPTs)

The Company has provided updated details on IPTs involving Dr. Sam Goi and his associates, a key shareholder and related party. These transactions are closely monitored for corporate governance and regulatory compliance.

• Group’s Net Tangible Assets (NTA): As at 31 December 2024, S\$354,097,000.
• Current Value of IPTs for FY2025:

• Change in Financing Costs: The interest payable to Dr. Sam Goi has decreased to S\$3,197,771 (from up to S\$3,685,582 previously) due to earlier repayment of New Shareholders’ Loans, directly utilising proceeds from the Subscription.
• Cancellation of Convertible Bonds: Following the cancellation of the Proposed Rights Issue, there are no longer any financing costs payable pursuant to the Undertaken 2025 Convertible Bonds, which may reduce ongoing financing expenses and improve future profitability.

Important Notes for Shareholders

• Significant Debt Reduction: The large portion of subscription proceeds used to pay off shareholder and other loans substantially strengthens GSH’s balance sheet and reduces financial risk. This move may be positively viewed by the market for its potential to lower interest expense and improve net profit margins.
• Reduction in Related Party Financing Costs: The early repayment of loans to Dr. Sam Goi and associates, and the cancellation of convertible bond-related financing costs, may eliminate concerns about excessive related party transactions and enhance corporate governance.
• Potential Impact on Share Price: Investors should monitor further announcements regarding the use of remaining proceeds, as strategic deployment could drive future growth or further de-risk the company.
• Transparency and Compliance: The company’s proactive disclosure underlines its commitment to transparency and compliance with the Singapore Exchange Listing Manual, which should provide shareholders additional confidence.

Conclusion

This announcement signals a period of financial strengthening for GSH Corporation Limited, with substantial debt repayment, reduced related party financing costs, and a clear roadmap for the deployment of capital. Shareholders should pay close attention to future updates regarding the utilisation of the remaining proceeds, as these may further impact the company’s financial position and share value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own research and consult with professional advisers before making investment decisions. The article is based on public disclosures by GSH Corporation Limited as at 25 November 2025, and the company may release further updates that could affect its outlook.

View GSH Historical chart here