Harry Elias Partnership LLP acted for Nam Cheong Limited, a mainboard listed company, in a recent placement exercise to raise capital of approximately SGD48 million under the terms of a conditional placement agreement entered into on 10 January 2013. Up to 190 million placement shares were involved, with 190 million borrowed from six Lenders under the terms of the said placement agreement.
The placement shares were placed out at S$0.255 each, representing a 9.7% discount to the weighted average price for trades on the full market day on 10 January 2013. The placement and subscription agreements were signed after the market closure.
The Company intends to utilize 70% to 90% of the net proceeds towards financing expenditure for shipbuilding projects, vessel chartering business and 10% to 30% of the net proceeds for refinancing of existing borrowings and general corporate purposes. Nam Cheong is a leading global offshore marine group specialising in the construction of offshore support vessels (OSV) and the largest OSV shipbuilder in Malaysia with nearly 7% of the regional market share, making it the second largest player east of the Suez Canal.
The Firm previously advised the Company in its reverse takeover in the successful listing of its shares onto the SGX Mainboard.