Heptamax International Limited Announces S\$650,000 Private Placement: What Retail Investors Need to Know
Key Highlights of the Share Placement
- Heptamax International Limited is proposing a private placement of 6,500,000 new ordinary shares at S\$0.10 per share, raising a total of S\$650,000.
- The placement is conducted via private placement exemption under Section 272B of the Securities and Futures Act 2001 (SFA), so no prospectus or offer information statement will be issued.
- No placement agent or underwriter involved. The shares are being placed directly with private investors.
- The placement shares represent approximately 15.26% of the current issued share capital and about 13.24% of the enlarged share capital post-placement.
- The shares will be listed and quoted on the Main Board of the SGX-ST, pending in-principle approval.
Detailed Breakdown of Subscribers
The placement shares will be allotted as follows:
| Subscriber |
Shares Allotted |
Consideration (S\$) |
% of Pre-Placement Capital |
% of Post-Placement Capital |
Total % Holding Post-Placement |
| Lee Siew Kiang |
2,000,000 |
200,000 |
4.69% |
4.07% |
4.76% |
| Lee Pei Qin |
1,500,000 |
150,000 |
3.52% |
3.05% |
3.05% |
| Koh Say Yong |
2,008,000 |
200,800 |
4.71% |
4.09% |
4.27% |
| Ding Hock Chai |
992,000 |
99,200 |
2.33% |
2.02% |
2.02% |
Note: Of these, only Lee Siew Kiang and Koh Say Yong currently hold shares. The other subscribers are new shareholders. Importantly, Ding Hock Chai is also a strategic and business consultant to the company on a retainer basis, while the others have no operational role.
Price-Sensitive Information and Impact on Shareholders
- The placement price of S\$0.10 per share represents a 26.10% premium over the weighted average trading price (S\$0.0793) on the day of the agreement. This premium could be seen as a sign of investor confidence, potentially supporting share prices in the near term.
- No change of control: The placement will not result in any subscriber becoming a controlling shareholder or a substantial shareholder, thus maintaining the current control structure.
- The placement does not require shareholder approval as it is within the general mandate granted at the last AGM, covering up to 20% of the share capital for non pro-rata issues.
- Proceeds Use: All net proceeds (estimated S\$590,000 after expenses) will be used for general working capital, strengthening the company’s financial position. This could help support operations and future growth, which might be positively viewed by the market.
- Pending deployment, proceeds may be placed in short-term deposits or investments, providing additional financial flexibility.
- The company has stated that, considering existing loans from the controlling shareholder, it has sufficient working capital for current needs.
- Financial Effects:
- NTA per share will increase from 1.02 to 2.09 Singapore cents post-placement.
- Loss per share (LPS) will slightly improve from 1.83 to 1.71 Singapore cents, as the new capital helps absorb losses over a larger base.
Risks and Cautionary Notes
- The placement is subject to several conditions, including SGX-ST approval and the continued existence of the general mandate. There is no certainty the placement will be completed as announced.
- Shareholders and potential investors are advised to exercise caution and not to take any action that may affect their interests until further announcements are made.
- Heptamax will report on the use of funds and update shareholders via SGX announcements and annual/interim reports.
Investor Takeaway
This placement strengthens Heptamax International Limited’s balance sheet, provides valuable working capital, and is done at a premium, indicating investor interest. While there is no change in control, the injection supports operational stability and future growth. However, as with all placements, dilution will occur (existing shareholders’ percentage will decrease), though this is offset by the improved financial position.
Completion of the placement is not guaranteed until all conditions are met, so investors should monitor future announcements closely.
Disclaimer
This article is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research or consult with a professional advisor before making any investment decisions. The information is based on company announcements as of 22 August 2025 and may be subject to change.
View Heptamax Historical chart here
