TOTM Technologies Secures SGX Approval for S\$3.23M Share Placement: What Retail Investors Must Know

Key Highlights from TOTM Technologies’ Latest Announcement

• Proposed Placement of Up to 135 Million New Shares: The company plans to issue up to 135,000,000 new ordinary shares at S\$0.0239 per share, potentially raising approximately S\$3.23 million.
• Approval from Singapore Exchange (SGX): On 8 August 2025, TOTM received the Listing and Quotation Notice (LQN) from the SGX, a crucial regulatory milestone for the share placement.
• Key Conditions: The placement is subject to shareholders’ approval at an upcoming Extraordinary General Meeting (EGM) and compliance with all SGX listing requirements.
• Board’s Stance: The company’s board will provide further updates as required, and they remind investors that the LQN does not reflect the merits of the company or the placement.
• Advisory for Investors: Shareholders and potential investors are strongly advised to exercise caution when dealing in TOTM shares and to consult professional advisers if in doubt.

What This Means for Shareholders and Investors

Potential Share Dilution: The issuance of up to 135 million new shares represents a significant increase in the company’s share base. Existing shareholders could see their stake diluted if they do not participate in the placement. This dilution may put downward pressure on the share price, at least in the short term.

Capital Injection: The proposed placement, if fully subscribed, is expected to raise approximately S\$3.23 million for TOTM Technologies. This injection of capital could support the company’s business expansion, operations, or strategic initiatives. However, specific uses of the funds were not disclosed in the announcement.

Regulatory and Shareholder Approvals: The placement will only proceed if shareholders approve it at an upcoming EGM. Investors should watch for the EGM notice and be prepared for possible volatility around the event.

SGX’s Position: The LQN from SGX is a procedural approval and should not be interpreted as an endorsement of the placement or the company’s prospects.

Ongoing Announcements: The board will continue to update the market as the placement process unfolds. Investors should remain vigilant for further disclosures.

Potential Impact on TOTM Technologies’ Share Price

• Price Sensitivity: News of a potential large share placement at a discount to market price can be price-sensitive. If the market views the placement price (S\$0.0239) as low compared to the prevailing share price, this may trigger a negative reaction.
• Liquidity Considerations: An enlarged share base could improve trading liquidity, which may help attract more investors in the long run.
• Market Uncertainty: Until the EGM and final terms are settled, uncertainty may persist, leading to near-term volatility in TOTM shares.

What Should Shareholders Do?

Exercise Caution: The board explicitly cautions all shareholders and investors to act prudently and, when in doubt, to seek advice from professional advisers such as bank managers, stockbrokers, or solicitors.

Monitor Announcements: Keep a close watch for further updates from the company, especially details regarding the EGM and any additional terms of the placement.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Retail investors should conduct their own research and consult financial professionals before making investment decisions. The author and publisher are not responsible for any losses incurred from investment activities related to the information provided above.

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