Koh Brothers Eco Engineering plans S$27.6 million rights issue; parent to take up S$15.1 million share
Parent Koh Brothers Group will take up its full entitlement; most proceeds are for working capital
Koh Brothers Eco Engineering (KBEE) has announced plans to raise up to S$27.6 million through a rights issue, with its parent company committing to purchase its full entitlement. The issue offers up to 563,644,184 new shares at S$0.049 each, which is a 30% discount to the average price on the day before the announcement. The proceeds will be used for working capital, capital expenditure and repayment of bank borrowings.
The exercise aims to strengthen the financial position and reduce reliance on uncommitted banking facilities. The rights issue is backed by irrevocable commitments from four shareholders, including the parent company Koh Brothers Group, which will subscribe for its full entitlement of about S$15.1 million.
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