King Wan Corporation Limited Receives SGX Approval-in-Principle for S\$3.5 Million Share Placement

Key Highlights

• Proposed Placement: King Wan Corporation Limited plans to issue 70,000,000 new ordinary shares at S\$0.05 per share, raising gross proceeds of S\$3,500,000.
• SGX Approval-in-Principle: The company received SGX-ST approval-in-principle (AIP) for the listing and quotation of these Placement Shares on the Mainboard of SGX-ST on 6 January 2026.
• Conditions Attached: The approval is subject to several important conditions, including compliance with specific SGX listing rules and undertakings regarding share allocation and use of proceeds.
• Timing: The Placement Shares are required to be issued within seven (7) market days from the date of AIP.

Detailed Overview

The Board of Directors of King Wan Corporation Limited announced its intention to place up to 70,000,000 new shares at S\$0.05 per share, totaling S\$3.5 million. This move is a significant step for the company, potentially impacting its capital structure and liquidity. The Placement Shares will be listed on the Mainboard of SGX-ST, subject to compliance with several regulatory requirements.

• SGX-ST Approval-in-Principle: The approval in-principle is a crucial regulatory milestone, indicating the Singapore Exchange’s preliminary acceptance of the share placement, subject to specific conditions.
• Conditions Imposed:
  • The company must provide written undertakings to comply with Rule 803 of the SGX-ST Listing Manual regarding share issuances.
  • Undertakings that Placement Shares will not be issued to persons prohibited under Rule 812(1) (such as certain insiders and related parties).
  • King Wan must comply with Rule 704(30) and Rule 1207(20) regarding detailed disclosures on the use of proceeds, especially if funds are applied towards working capital. This includes providing a breakdown and specific details in both ongoing announcements and annual reports.
• Timing of Issuance: The Placement Shares must be issued within seven market days of receiving the AIP, which introduces a clear and imminent timeline for investors to track.

Shareholder Considerations & Potential Price Sensitivities

• Dilution Effect: The issuance of 70 million new shares may dilute existing shareholdings, potentially impacting earnings per share and shareholder voting power. Investors should assess this in light of the company’s future growth prospects and strategic objectives.
• Use of Proceeds: The specific application of the S\$3.5 million raised will be disclosed in subsequent company announcements. If funds are directed to working capital, detailed breakdowns will be made available, which could signal management’s priorities and affect market sentiment.
• Regulatory Compliance: The company’s commitment to strict SGX rules and its transparent reporting obligations may bolster investor confidence, but any deviation or negative disclosure could weigh on share price.
• Completion Risk: The announcement stresses that there is no certainty the Proposed Placement will be completed. Shareholders are advised to monitor further announcements closely, as a failed placement could have adverse implications for the company’s liquidity and expansion plans.

Management Statement & Next Steps

The Directors have accepted full responsibility for the accuracy of the information disclosed. They confirm that all material facts have been presented and will continue to update investors on material developments. Investors should watch for further updates from the company as the placement progresses.

Cautionary Note

Shareholders are reminded that there is no certainty or assurance as of this announcement that the Proposed Placement will proceed to completion. Investors are encouraged to exercise caution and seek professional advice regarding their shareholdings.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to trade in the securities mentioned. Investors should conduct their own research and consult professional advisors before making any investment decisions. The information herein is based on official company disclosures as of 7 January 2026 and may be subject to change.

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