Heptamax International Launches S\$650,000 Private Placement: Major Share Issuance to Boost Working Capital

Key Highlights

• Heptamax International Limited is raising S\$650,000 through the private placement of 6,500,000 new shares at S\$0.10 per share.
• The placement price represents a 26.1% premium over the last traded price on 22 August 2025.
• No placement agent or underwriter is involved. The placement is a private arrangement under Singapore’s SFA Section 272B exemption.
• Four individual investors will be allocated shares, with no new substantial shareholder created and no transfer of controlling interest.
• Proceeds will be used entirely for general working capital to strengthen the company’s financial position.
• Shareholder’s approval is not required as the placement is within the share issuance mandate approved at the latest AGM.
• After the placement, the company’s issued share capital will increase by about 15.26%, diluting existing shareholders but boosting NTA per share.
• Net tangible assets per share will double from 1.02 to 2.09 Singapore cents, while loss per share will decrease from 1.83 to 1.71 cents.

Full Details: What Investors Need to Know

Background and Structure of the Placement

On 22 August 2025, Heptamax International Limited announced a private placement of 6,500,000 new ordinary shares at S\$0.10 per share, raising a total of S\$650,000. The company is issuing these shares to four private investors, all of whom are individuals and not investment funds. Notably, two of the investors, Mr. Lee Siew Kiang and Mr. Koh Say Yong, are existing shareholders, while Mr. Ding Hock Chai is also a strategic and business consultant to the company.

The private placement is being conducted without an underwriter or placement agent and is exempt from the need for a prospectus under Section 272B of the Securities and Futures Act. This means retail investors won’t receive detailed offer documents. The shares will be listed on the SGX Main Board subject to in-principle approval.

Allocation of Shares and Potential Dilution

The shares will be allocated as follows:

• Lee Siew Kiang: 2,000,000 shares (4.07% post-placement, total 4.76%)
• Lee Pei Qin: 1,500,000 shares (3.05% post-placement, total 3.05%)
• Koh Say Yong: 2,008,000 shares (4.09% post-placement, total 4.27%)
• Ding Hock Chai: 992,000 shares (2.02% post-placement, total 2.02%)

Before the placement, Heptamax had 42,599,999 shares on issue. After the placement, the share count will rise to 49,099,999, increasing the total share capital by about 15.26%. This will cause some dilution to existing shareholders’ percentage ownership, although no single subscriber will become a substantial shareholder or gain control.

Use of Proceeds: Working Capital Boost

The company plans to use the estimated net proceeds of S\$590,000 (after deducting S\$60,000 of expenses) solely for general working capital. This infusion is designed to improve cash flow and strengthen the financial position of the company, which the board believes is in the best interests of shareholders, especially as current working capital is sufficient to meet near-term requirements.

The company has committed to transparency by promising periodic updates on the use of proceeds in its financial statements and annual reports, with a breakdown of how funds are applied. Any material deviations from the stated use will be announced.

Financial Impact: NTA Doubles, Loss Per Share Shrinks

• Net Tangible Assets (NTA) per share: Will rise from 1.02 cents to 2.09 cents, as the placement increases cash on the balance sheet.
• Loss per share (LPS): Improves from 1.83 cents to 1.71 cents, as the share base increases and net loss rises only slightly (due to placement costs).

These changes are based on the company’s audited financials for the year ended 31 December 2024 and are for illustrative purposes only.

Regulatory and Shareholder Considerations

• The placement is conducted under the company’s existing share issue mandate (no new shareholder approval needed).
• No change in control or creation of a new substantial shareholder.
• No conflict of interest: Directors and substantial shareholders have declared no connections to the subscribers, other than through shareholdings or, for Mr. Ding, a consultancy arrangement.
• Conditions for completion include SGX approvals and the continued effectiveness of the share issue mandate.
• If the placement is not completed within one month (or another mutually agreed period), the agreement lapses.

What Could Move the Share Price?

This announcement is significant for share price movement because:

• The raising of new capital at a premium to the current market price signals confidence in the company’s valuation and prospects.
• The increase in NTA per share may be viewed positively by investors seeking greater asset backing.
• Improved working capital could enable the company to pursue new business opportunities or better weather operational challenges.
• However, the dilution of existing shareholders’ stakes may be seen as a negative by some investors.
• Any further announcements regarding the use of proceeds, new business developments, or deviations from planned capital deployment could be price sensitive.

Caution for Investors

The placement is subject to several conditions, including regulatory approvals, and there is no guarantee it will be completed. Investors are advised to monitor further company announcements closely and consult professional advisers if in doubt about their investment positions.

Conclusion

This private placement is a significant move by Heptamax International to strengthen its balance sheet at a premium price. It is expected to improve the company’s financial health and could impact share price both positively (through enhanced NTA and cash position) and negatively (due to dilution). Shareholders should stay alert for further updates as the placement progresses toward completion.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Readers should consult their own financial advisers before making any investment decisions. The author and publisher are not responsible for any investment actions taken by readers based on this article.

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