Raffles Education Limited Announces Full Utilisation of S\$5.5 Million Raised from Treasury Share Sale

Key Highlights:

• Raffles Education Limited has announced the full utilisation of the net proceeds amounting to S\$5,501,702 from the sale of 44,660,300 treasury shares.
• The sale was previously disclosed on 16 January 2026, and the company has now provided a detailed breakdown of how the funds have been allocated.

Detailed Breakdown of Proceeds Utilisation

The net proceeds were allocated across several key areas, reflecting both operational and strategic priorities:

• Personnel Expenses: S\$723,927 directed towards staff-related costs, ensuring operational continuity and retention of talent.
• Professional Fees: S\$572,013 utilised for legal, advisory, and other professional services.
• Interest Expenses: S\$482,445 paid to service existing debt obligations, helping manage the company’s cost of capital.
• Other Payables: S\$390,498 settled to clear outstanding liabilities with creditors.
• Other Operating Expenses: S\$98,855 spent on miscellaneous operational costs.
• Taxes: S\$159,872 paid, supporting compliance and regulatory obligations.
• Loan Repayments: S\$1,078,225 was used to repay borrowings, reducing the company’s leverage.
• Investment in Raffles Iskandar Sdn Bhd: The largest allocation, S\$1,995,867, was invested into subsidiary Raffles Iskandar Sdn Bhd, indicating a strategic commitment to growth in this area.

Potential Price Sensitive Information for Shareholders

• Full Utilisation of Funds: Investors should note that the entire S\$5.5 million raised has been fully utilised. There are no remaining funds from this capital raise, which may impact expectations regarding future liquidity or further growth initiatives.
• Significant Strategic Investment: The substantial investment into Raffles Iskandar Sdn Bhd hints at a major focus on this subsidiary’s development. Any progress or setbacks in Raffles Iskandar Sdn Bhd could have a direct impact on the group’s future earnings and share value.
• Debt Reduction: The repayment of over S\$1 million in loans is a positive move for the company’s balance sheet, potentially reducing interest expenses and financial risk in future quarters.
• Transparency in Fund Allocation: The company has confirmed that, apart from the investment in Raffles Iskandar Sdn Bhd, the use of proceeds aligns with the intended purposes previously communicated to shareholders.

Implications for Shareholders

The confirmation of full utilisation could be important for current and prospective shareholders, as it offers insight into the company’s immediate priorities and financial strategy. The significant allocation towards debt repayment and investment in a key subsidiary may be viewed positively by the market, indicating a focus on both strengthening the balance sheet and pursuing growth. However, as there are no remaining proceeds from this share sale, any further capital requirements may need new funding avenues, which could affect future dilution or leverage.

Leadership Statement

The update was authorised by Chew Hua Seng, Chairman and Chief Executive Officer of Raffles Education Limited, reaffirming the company’s commitment to transparency and shareholder communication.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence or consult professional advisors before making investment decisions. The information may be subject to change without notice.

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