GSH Corp raises S$246.8m in rights issue for China property expansion

Rights issue was subscribed by 114%.

In a release, Mainboard-listed GSH Corporation Limited (GSH) announced that its renounceable non-underwritten one-for-one rights issuehad received strong interest from investors and was subscribed by approximately 114%, raising net proceeds of approximately S$246.8 million.

The company said the raised funds will be usd to boost its ‘war chest’ fund for the Group’s expansion plans in property development in the China/

The Rights Issue was launched on 7 May 2013 at an issue price of S$0.05 per share. As at the close of the Rights Issue on 27 May 2013, valid acceptances and excess applications were received for a total of 5,618,033,128 Rights Shares, representing approximately 114% of the total number of 4,942,590,125 Rights Shares offered under the Rights Issue.

As an indication of his support and commitment to the Group, Mr Sam Goi, GSH’s Non-Executive Chairman, had subscribed in full his entitlement of 2,296,384,988 Rights Shares. Based on the Group’s enlarged issued share capital of 9,885,180,250 Shares immediately after the Rights Issue, Mr Goi continues to be the largest shareholder of the Group with a 46.46% stake.

The 4,942,590,125 Rights Shares are expected to be issued on 3 June 2013, and listed and quoted on the SGX-ST Mainboard from 9.00 am on 4 June 2013.

“On behalf of the Board, I would like to thank our shareholders and investors for their strong support of GSH’s Rights Issue. It was indeed no mean feat for us to successfully raise close to S$250 million from the market. We believe this strong response reflects the investment community’s confidence in the growth potential of GSH,” said Mr Goi.

“GSH has made tremendous progress over the past two years. Following the Group’s return to profitability in FY2011 and removal from SGX-ST’s Watch-List in September last year, our business is now on the cusp of transformation and the company’s market capitalisation has gone beyond half a billion dollars. The proceeds from this latest Rights Issue puts GSH in a stronger financial position to expand beyond our existing distribution business and pursue our growth strategy in property development in China,” elaborated Mr Gilbert Ee, Chief Executive Officer of GSH.