The Placement Shares when issued and fully paid will rank pari passu (equal) in all respects with the existing ordinary shares of the Company. This Placement will increase the existing issued and paid-up ordinary share capital of the Company by approximately 13.74%, from $21,828,000 comprising of 218,280,000 ordinary shares to $24,828,000 comprising 248,280,000 ordinary shares. Similarly, the net tangible assets per share of the Group as of June 30, 2005 will be adjusted from 35.95 cents to 39.56 cents after the Placement.
After deducting estimated expenses of $0.65 million, the net proceeds from the Placement are estimated to stand at $19.75 million. Out of this balance, about $6.0 million will be used to fund expansion in the Group's various shipyards while another $8.0 million will be used for the purchase of new vessels. The rest of the proceeds will be reserved for working capital purposes.
In response to the Placement, Mr Ang Kok Tian, Executive Chairman and Managing Director of ASL Marine said, " We are glad that investors are showing confidence in ASL Marine by subscribing to our Placement shares. The proceeds from the Placement will enable us to accelerate our expansion plans. With our strong Shipbuilding orderbook and enhanced Shipyard capabilities, we are confident of record earnings in FY2006."
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