Hong Leong Asia Ltd. Receives SGX Approval for S\$145 Million Share Placement

Key Points for Investors

• Approval in-principle granted: Hong Leong Asia Ltd. (“HLA” or the “Company”) has obtained approval in-principle from the Singapore Exchange Securities Trading Limited (SGX-ST) for the listing and quotation of 50,000,000 new ordinary shares (the “Placement Shares”) at S\$2.90 per share.
• Potential fundraise: The proposed placement, if completed, will raise S\$145 million (S\$2.90 x 50,000,000 shares) in fresh capital for HLA.
• Regulatory compliance: The approval is subject to several SGX-ST listing requirements and written undertakings by both the Company and the placement agent to ensure full compliance with rules related to the use of proceeds, placement restrictions, and disclosure obligations.

Details of the Share Placement

On 4 May 2026, HLA’s Board announced the receipt of approval in-principle from SGX-ST for the proposed placement of 50,000,000 new ordinary shares priced at S\$2.90 each. These Placement Shares are to be listed on the Main Board of SGX-ST, subject to fulfilment of various conditions, including compliance with SGX-ST listing rules and the Placement Agreement.

The Placement Agent for this exercise is CGS International Securities Singapore Pte. Ltd., which has also provided the necessary undertakings to SGX-ST, ensuring that the Placement Shares will not be allotted to prohibited persons and that all regulatory requirements will be met.

Important Information for Shareholders

• Conditional approval: The SGX-ST’s approval in-principle does not represent a confirmation of the merits of the Proposed Placement, the Company, its subsidiaries, or its securities. The completion of the placement remains subject to the satisfaction of all conditions precedent under the Placement Agreement.
• Use of proceeds: The Company is required to provide detailed breakdowns on the use of proceeds, especially if used for working capital, both in future announcements and in its annual report. This transparency is mandated by SGX-ST rules to ensure proper investor awareness.
• Impact on shareholding and share price: The issuance of 50,000,000 new shares will dilute existing shareholders but will also strengthen the Company’s balance sheet with a substantial inflow of capital. The use of these funds, if value-accretive, could potentially support the Company’s growth strategies and long-term share value.
• Placement restrictions: Both HLA and the Placement Agent have provided written confirmations that the Placement Shares will not be issued or placed out to persons prohibited under Rule 812(1) of the SGX-ST Listing Manual, ensuring compliance with regulatory restrictions on placements.

Investor Advisory & Risks

Shareholders and potential investors are advised that the Proposed Placement is not yet completed and remains subject to the fulfilment of all conditions precedent in the Placement Agreement. There is a cautionary note from the Board urging market participants to exercise care when trading HLA shares, as the outcome of this placement may affect the Company’s capital structure and future plans.

Next Steps and Ongoing Disclosure

The Company has committed to making further announcements should there be any material developments related to the Proposed Placement. Investors are encouraged to monitor such disclosures closely as these could influence the Company’s share price.

Regulatory and Jurisdictional Notice

The Placement Shares are not offered to the public in the United States and will only be offered and sold in “offshore transactions” as defined by Regulation S under the U.S. Securities Act of 1933. The Placement Shares are prescribed capital markets products and Excluded Investment Products under Singapore’s regulations. Restrictions apply on offers and sales of the Placement Shares in Singapore and other jurisdictions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to sell or a solicitation to buy any securities. Investors should consult their professional advisors before making any investment decisions. The outcome of the Proposed Placement is subject to various conditions and market risks.