Lincotrade & Associates Holdings Limited Successfully Completes S\$2.2 Million Share Placement

Lincotrade & Associates Holdings Limited (SGX: Not specified), a Singapore-incorporated company, has announced the successful completion of its proposed private placement of new ordinary shares. This development marks a significant milestone for the company and holds several important implications for existing and potential investors.

Key Highlights of the Announcement

• Placement of 10,000,000 New Ordinary Shares: The company completed the issuance and allotment of 10,000,000 new ordinary shares at a placement price of S\$0.22 per share.
• Total Proceeds Raised: The placement raised a total aggregate consideration of S\$2,200,000 for the company, providing it with additional capital resources.
• Share Capital Increase: Following the placement, the company’s total issued and paid-up share capital has increased from 172,027,726 shares to 182,027,726 shares.
• Share Terms: The new placement shares are issued free from all claims, pledges, mortgages, charges, liens, and encumbrances. They will rank pari passu with existing shares, except they will not be eligible for dividends, rights, allotments, or other distributions where the record date falls on or before their allotment and issue date.
• Listing Date: The placement shares are expected to be listed and quoted on the Catalist board of the SGX-ST on or around 4 December 2025, starting from 9:00 a.m.
• Placement Agent: The placement was conducted by SAC Capital Private Limited, who acted as the placement agent.

Important Considerations for Shareholders

• Dilution of Shareholding: The issuance of 10 million new shares represents a dilution of approximately 5.8% in the company’s share capital. Existing shareholders’ percentage of ownership will decrease correspondingly unless they participated in the placement.
• Potential Impact on Share Price: The influx of new shares and additional capital could have a dual impact: while the dilution effect may exert downward pressure on the share price, the capital raised strengthens the company’s balance sheet, potentially supporting future growth initiatives or operational needs.
• Dividend Entitlement: Investors should note that the new placement shares are not entitled to any dividends, rights, allotments, or other distributions declared before the date of allotment. This could affect short-term yield expectations for those acquiring the new shares specifically for dividend purposes.
• Use of Proceeds: While the document does not specify the intended use of the S\$2.2 million raised, such placements are typically aimed at funding expansion, working capital, or strategic investments. Investors may wish to seek clarification from management on this point at upcoming meetings or disclosures.
• Regulatory Review: The announcement was reviewed by the company’s sponsor, SAC Capital Private Limited. However, the Singapore Exchange Securities Trading Limited (SGX-ST) has not examined or approved the content, and assumes no responsibility for its accuracy.

Market Significance

This share placement is a material corporate event for Lincotrade & Associates Holdings Limited. The successful completion of the placement and the injection of S\$2.2 million in fresh capital could enable the company to pursue growth opportunities, improve its financial stability, and potentially enhance long-term shareholder value. However, the immediate effect of share dilution and the lack of explicit details regarding the use of proceeds are factors that investors should monitor closely.

Next Steps

• Investors are advised to watch for further announcements from the company regarding the use of placement proceeds and any strategic initiatives funded by this capital raise.
• The listing of new shares on the Catalist board on 4 December 2025 may impact trading volumes and price dynamics in the near term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own due diligence or consult a financial advisor before making any investment decisions. The information contained herein is based on official company announcements and is accurate as of the date of publication, but may be subject to change without notice.

View Lincotrade Historical chart here