H2G Green Limited Announces S\$3.6 Million Share Placement to Strengthen Financial Position

Key Highlights

• Proposed Placement of 516,592,500 New Shares: H2G Green Limited (“H2G” or the “Company”) has entered into subscription agreements on 19 April 2026 to issue 516,592,500 new ordinary shares at S\$0.00702 per share, raising a total of S\$3,626,479.35 in cash.
• Significant Dilution and Enlarged Share Capital: Post-placement, the Company’s issued and paid-up share capital will increase from 1,862,919,922 to 2,379,512,422 shares. The new shares will represent about 21.71% of the enlarged share capital, a material dilution for existing shareholders.
• Pricing Details: The placement price represents a 10% discount to the volume weighted average price (VWAP) of S\$0.0078 on the last trading day before the agreements were signed (14 April 2026).
• Subscriber Breakdown: The placement is divided among 13 subscribers, with none holding or increasing their stake above 5% of the enlarged share capital. The largest individual allocations (100 million shares each) go to Wong Bei Keen and Hing Zeng Min, Audrey, both private investors.
• Use of Proceeds: 60% of the net proceeds (~S\$2.16 million) will be used for general working capital (notably LNG supplies for its subsidiary, Gashubunited Utility Pte Ltd), and 40% (~S\$1.44 million) for capital expenditure in the LNG business.
• Financial Effects: The placement will lower the Group’s Net Tangible Asset (NTA) per share from 1.17 cents to 1.04 cents and reduce loss per share from 0.27 cents to 0.20 cents, based on FY2025 results.
• Control Implications: No change of control will occur. Major shareholders Hongkong China Treasury Limited (HKCT) and Mr Lim Shao-Lin (and associated entities) will remain controlling shareholders, though their percentage stakes will be diluted.

Details of the Placement

The Company’s Board announced that the subscription agreements were entered into on 19 April 2026, setting an issue price of S\$0.00702 per share. The placement is expected to raise approximately S\$3.63 million gross, or S\$3.59 million net of estimated S\$33,000 in expenses.

The placement falls within the general mandate approved at the 2025 AGM, authorizing the Board to issue shares up to 50% of the share capital on a non pro-rata basis. No further shareholder approval is needed unless the placement would result in a change of control, which is not the case here.

Subscribers and Shareholding Structure

Key Subscriber Details:

• Wong Bei Keen and Hing Zeng Min, Audrey (her daughter): each subscribing for 100 million shares (4.20% each post-placement).
• Other subscribers include private investors, some of whom are existing shareholders, such as Teo Tat Beng, Chua Weijie (related to Dr Chua Thian Poh, founder of Ho Bee Group), and One Hill Investments Pte. Ltd.

None of the subscribers, individually or in aggregate with their associates, will hold more than 5% of the enlarged share capital, thus avoiding concentrated ownership concerns.

All subscribers provided warranties that they are not related to the Company’s directors, major shareholders, or acting in concert to gain control.

Rationale and Use of Proceeds

The Company states that the placement is intended to strengthen the Group’s financial position, support capital expenditure, and provide working capital specifically for the growing LNG business. The allocation of proceeds is as follows:

• 60% for working capital: Including purchases of LNG supplies.
• 40% for capital expenditure: Targeted at expanding the LNG business.

Management will provide periodic updates on the use of proceeds, with breakdowns in financial statements and announcements.

Financial Effects

The placement is expected to have the following impacts:

• NTA per share decreases from S\$0.0117 to S\$0.0104 (due to significant increase in shares issued relative to funds raised).
• Loss per share improves from S\$0.0027 to S\$0.0020, as the loss is spread across more shares.

These effects are illustrative and based on FY2025 audited figures.

Shareholding and Control

Post-placement, the major shareholders’ stakes will be diluted as follows:

• Lim Shao-Lin (direct and deemed): from 30.78% to 24.10%.
• Gashubunited Holding Private Limited (GHPL): from 21.99% to 17.22%.
• Hongkong China Treasury Limited (HKCT): from 28.84% to 22.58%.

No new controlling shareholder will emerge from this placement.

Other Notable Points

• No Prospectus or Offer Information Statement: The placement is exempt from prospectus requirements under Section 275 of the Securities and Futures Act. No placement agent or commission is involved.
• Conditions Precedent: The placement is conditional upon SGX-ST approval for listing the new shares, and no legal or regulatory prohibitions. If not completed within six months, the agreements are voided and funds returned.
• Transparency: The Company will make further announcements as needed and provides for inspection of the subscription agreements at its registered office.

Potential Price Sensitivities for Investors

• Significant dilution: The issue of over 27% new shares (relative to current share capital) is materially dilutive and may put pressure on the share price.
• Discounted pricing: Shares are being issued at a 10% discount to recent market prices, which may also affect secondary market pricing in the short term.
• Strengthened balance sheet and capital for LNG business: The funds are targeted at supporting growth in the Company’s LNG business, which may drive future revenue and profit if executed well.
• No change in control: Existing controlling shareholders retain control, which may reassure investors wary of a shift in strategic direction.
• No placement commission or agent fees: Maximizes funds raised for Company use.

Conclusion

The proposed placement is a major development for H2G Green Limited, with significant immediate dilution but potentially positive longer-term implications due to the capital injection targeted at the Company’s LNG business. Investors should weigh the dilution and discounted placement price against the strategic rationale and expected use of funds.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The Company’s actual results may differ from illustrative figures provided. The information herein is based on public disclosures made by H2G Green Limited as of 20 April 2026.

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