Lincotrade & Associates Holdings Limited Proposes Placement of Up to 10 Million New Shares at S\$0.22 Each

Lincotrade & Associates Holdings Limited (SGX: not provided) has announced a potentially significant corporate action that could impact its share price and investor sentiment. On 24 November 2025, the company’s Board revealed a proposed placement of up to 10,000,000 new ordinary shares at a placement price of S\$0.22 per share, raising up to S\$2.2 million in gross proceeds.

Key Highlights of the Proposed Placement

• Placement Details: The placement will not be underwritten and will be conducted via an exempt offering in Singapore, in accordance with Section 272B of the Securities and Futures Act. No prospectus will be issued.
• Placement Price: Set at S\$0.22 per share, representing a 3.14% premium over the volume weighted average price (VWAP) of S\$0.2133 per share for trades on 21 November 2025, the last full trading day before the agreement.
• Share Capital Impact: The new shares will account for about 5.81% of the company’s existing issued share capital and approximately 5.49% of the enlarged share capital after placement.
• Investor Safeguards: The placement shares will not be allotted to directors, substantial shareholders, or interested persons under SGX Catalist Rules, unless otherwise approved.
• No Change in Control: The placement will not result in any transfer of controlling interest in the company.

Use of Proceeds and Strategic Rationale

• Strengthening Financial Position: The estimated net proceeds, after deducting expenses of about S\$91,000, will amount to approximately S\$2.109 million. All net proceeds will be used for working capital purposes, supporting ongoing projects and business expansion.
• Order Book Growth: The company’s order book soared by 101.8% to S\$113.0 million as at 30 September 2025 (from S\$56.0 million a year ago), reflecting growing business momentum and the need for increased financial flexibility.
• Sector Outlook: Singapore’s construction demand for 2025 is forecasted to be between S\$47 billion and S\$53 billion, with the public sector projected as the key driver. Lincotrade aims to capitalize on these opportunities.
• Market Liquidity: The placement is also intended to broaden the shareholder base, increase public float, and enhance trading liquidity.

Financial Effects of the Placement

• Share Capital: Will increase from 172,027,726 to 182,027,726 shares.
• Net Tangible Assets (NTA) per Share: Will rise from 7.21 cents to 7.98 cents.
• Earnings Per Share (EPS): Will dilute from 1.49 cents to 1.35 cents, based on the pro forma financial results for FY2025.

Salient Terms of the Placement Agreement

• Commissions: The Placement Agent, SAC Capital Private Limited, will receive a 3% commission on shares successfully placed, and may also charge subscribers a 1% commission.
• Conditions Precedent: The placement is subject to several key conditions, including continued trading on the Catalist board, regulatory exemptions, and approval from the SGX-ST for listing and quotation of the placement shares.
• Termination: If conditions are not met by the cut-off date (eight weeks from the agreement date), the agreement will automatically terminate with no liability to either party beyond the surviving provisions.

Shareholder and Market Impact

• Price Sensitivity: The placement price premium, increased order book, and strengthened working capital position could have a positive impact on sentiment. However, EPS dilution and potential share overhang from the new shares may create downward pressure.
• No Insider Participation: None of the new shares will be placed to insiders, substantial shareholders, or interested persons, minimizing conflict-of-interest concerns.
• Reporting and Transparency: The company will provide periodic updates on the use of proceeds, including detailed breakdowns in financial reports.

Important Matters for Shareholders

• Completion Risks: The placement is subject to fulfillment of multiple conditions precedent, and there is no certainty it will be completed.
• Material Developments: Investors should monitor future disclosures from the company for updates regarding the placement outcome, use of proceeds, and any material deviations.

Directors’ Confirmation

The board has confirmed that, even without the placement, the Group’s existing bank facilities and working capital are sufficient for present requirements. The placement will provide additional financial flexibility.

Inspection of Documents

The Placement Agreement is available for inspection at the company’s registered office for three months from the announcement date.

Conclusion and Outlook

The proposed placement, if completed, will provide Lincotrade with the capital required to support rapid growth in its order book, position the company to capitalize on robust construction sector demand, and potentially enhance trading liquidity. Investors should weigh the positive implications of a stronger balance sheet and improved liquidity against the near-term EPS dilution and possible share price volatility as a result of the enlarged share base.

Shareholders are advised to stay updated with further company announcements and consult their professional advisors as needed.

Disclaimer: The information in this article is based on the official announcement by Lincotrade & Associates Holdings Limited dated 24 November 2025. This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The completion of the proposed placement is subject to various conditions and regulatory approvals, and there is no assurance that it will proceed as described.

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