Sinwa to raise S$15.34 million in rights issue

he marine supply and logistics player will issue up to 111,155,932 new Rights Shares at S$0.138 per share to increase capital base.

Marine supply and logistics player, Sinwa Limited, on Wednesday said it is going to undertake a renounceable non-underwritten rights issue to raise gross proceeds of approximately S$15.34 million, assuming full subscription.

Up to 111,155,932 Rights Share will be offered at an issue price of S$0.138 per share on the basis of 1 Rights Share for every 2 existing ordinary shares in Sinwa.

According to a Sinwa release, this will represent 50% of Sinwa’s existing issued and paid-up share capital of 222,311,865 shares as at the date of this announcement.

“With this capital raising, we would be looking at further growth via M&A and also explore opportunities to add on more vessels in our chartering fleet. Also, the funds raised would ease the working capital requirements, increase our capital base and the Rights Shares would help improve the liquidity of shares traded in the market,” said Mr Mike Sim, Executive Chairman and CEO of Sinwa.