Key Points from Tiong Seng Holdings Limited’s SGX RegCo Response

• Placement of 20,000,000 New Shares: Tiong Seng Holdings Limited completed a placement of 20 million new ordinary shares to Continental Steel Pte Ltd on 20 January 2025, raising net proceeds of approximately S\$1.92 million.
• SGX RegCo Query: Singapore Exchange Regulation (SGX RegCo) requested a detailed breakdown of how the proceeds were used, as mandated by Listing Rule 704(30) for offerings under Chapter 8.
• Company’s Response: The entire S\$1.92 million in net proceeds was utilised for payments to the Group’s subcontractors, specifically for working capital purposes. This usage aligns with the original intention disclosed in the placement announcement dated 30 December 2024.
• Disclosure Oversight: The annual report (page 104) omitted the specific breakdown, but the Company confirmed the full amount was used exclusively for subcontractor payments, as previously announced on 31 October 2025.
• Confirmation & Compliance: Tiong Seng Holdings Limited has confirmed that the use of proceeds is both consistent with prior disclosures and compliant with SGX requirements.

Important Information for Shareholders

• Transparency and Compliance: The Company’s clarification and confirmation of the proceeds’ use demonstrate a commitment to transparency and compliance, which is critical for investor confidence.
• Financial Implications: The S\$1.92 million was not diverted to other operating or administrative expenses, but fully allocated to subcontractor payments. This may indicate a focus on maintaining operational continuity and fulfilling contractual obligations within ongoing projects.
• Oversight Rectified: The Company admitted to an inadvertent oversight in its annual report, but has now rectified it publicly, reducing the risk of regulatory scrutiny or investor concern over fund utilisation.
• Potential Impact on Share Price: While this clarification bolsters transparency and may reassure investors, there is no indication of misuse or unexpected allocation of funds. Therefore, the announcement is unlikely to cause significant volatility unless investors had concerns over the omitted breakdown.

Detailed Breakdown of Proceeds Utilisation

The net proceeds of S\$1.92 million from the placement were intended for working capital needs, originally outlined as operating and administrative expenses, staff salaries, and both trade and non-trade payments (including payments to subcontractors). Ultimately, the Company confirmed that the entire amount was applied specifically to payments to subcontractors, and not distributed among other categories. This level of detail is crucial for investors tracking the Company’s cash flow and operational priorities.

Conclusion

Tiong Seng Holdings Limited has provided a clear and comprehensive response to SGX RegCo’s query, confirming that all proceeds from the recent share placement were used as intended for subcontractor payments. This disclosure addresses any prior ambiguity and signals continued adherence to regulatory standards.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult financial advisors before making investment decisions related to Tiong Seng Holdings Limited.

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