Serial Achieva Limited Announces S\$4.6 Million Strategic Share Subscription by UFCT Technology

Serial Achieva Limited (the “Company”), a Labuan-incorporated entity listed on the Singapore Exchange’s Catalist Board, has announced a significant capital raise and strategic partnership with UFCT Technology Co., Limited (the “Subscriber”), an established Hong Kong-based electronic components distributor and subsidiary of Shenzhen-listed Shannon Semiconductor Technology Co., Ltd. This development is poised to significantly impact the Company’s capital structure, business prospects, and potentially its share price.

Key Highlights of the Transaction

• Issue of New Shares: Serial Achieva will issue and allot 21,004,873 new ordinary shares to UFCT Technology at a subscription price of S\$0.22 per share, representing a 21.55% premium to the last traded volume-weighted average price (VWAP) of S\$0.181 on 10 March 2026.
• Capital Raised: The total amount to be raised is approximately S\$4.62 million (equivalent to about US\$3.62 million).
• Dilution and Shareholding Impact: The new shares represent 12.37% of Serial Achieva’s existing issued share capital and 11.01% of the enlarged share capital post-issuance. Upon completion, UFCT Technology will become a substantial shareholder, while the stake of current largest shareholder, Serial System Ltd, will decrease from 77.64% to 69.09%.
• Use of Proceeds: The net proceeds (about S\$4.6 million after expenses) will be used for repayment of existing loans (40%) and strengthening working capital (60%), including personnel costs, administrative expenses, and professional fees.
• Strategic Partnership: UFCT Technology is a distributor for renowned semiconductor brands like MediaTek, SK Hynix, and AMD, and serves major cloud customers such as Alibaba, Tencent, and ByteDance. Its parent, Shannon Semiconductor, is a major player with a market capitalization of RMB72.9 billion (US\$10.59 billion) and was ranked 3rd by revenue among Chinese electronic component distributors in 2024.

Details and Terms of the Subscription Agreement

• The Subscription Shares will be issued free from any claims, charges, or encumbrances, ranking pari passu with existing shares except for any entitlements with a record date before the issue date.
• The completion of the subscription is subject to several conditions precedent, including the approval from the SGX-ST for listing and quotation of the new shares, satisfactory due diligence by both parties, and no legal or regulatory impediments.
• The subscription is being conducted under a general share issue mandate approved at the AGM on 29 April 2025 and does not require further shareholder approval or a prospectus/offer document.
• There is a six-month lock-up period post-completion during which the Subscriber cannot transfer the shares without company consent. After this period, any sales must comply with Singapore securities law exemptions and must not cause the Company to breach Section 272B of the Securities and Futures Act.
• The long-stop date for fulfilling all conditions is 30 April 2026.

Financial Impact

• Net Tangible Assets (NTA) per Share: NTA will rise from US 2.59 cents to US 4.19 cents per share post-transaction, reflecting a stronger balance sheet.
• Loss Per Share (LPS): The transaction will reduce the LPS (for FY2024) from US (3.85) cents to US (3.40) cents, due to the enlarged share base.

Important Information for Shareholders

• Shareholding Structure: After the subscription, UFCT Technology will hold 11.01% of the Company, while Serial System Ltd’s stake will decrease but it will remain the majority shareholder. Public float will adjust from 22.36% to 19.90%.
• No Related Party Transaction: Neither the directors nor substantial shareholders have any interest, direct or indirect, in the subscription beyond their current holdings.
• Price-Sensitive Nature: The introduction of a major strategic investor at a significant premium, the strengthening of the Company’s financial position, and the partnership with a global semiconductor distribution group are all potentially price-moving developments.
• Trading Caution: The Company cautions that the subscription is subject to several conditions and there is no certainty of completion. Shareholders are advised to exercise caution when dealing in the Company’s shares.

Rationale and Strategic Importance

The Company believes the subscription will not only bolster its financial footing by reducing debt and improving liquidity, but also create new business opportunities via the partnership with UFCT Technology and the Shannon Semiconductor group. The association with a major player in the semiconductor distribution sector, with access to leading global brands and customers, could open up new growth avenues for Serial Achieva.

Next Steps and Inspection of Documents

The Company will make further announcements as material developments arise, particularly in relation to SGX-ST approvals and completion of the transaction. The Subscription Agreement is available for inspection at the Company’s registered office for three months from the date of announcement.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The writer and publisher do not warrant the accuracy or completeness of the information contained herein and disclaim any liability for losses arising from reliance on this article. Investors should consult their financial advisors and review the Company’s public filings before making any investment decisions.

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