21 March, 2018
ZICO Insights Law LLC is advising AEI Corporation Ltd (the “Company”), a SGX-ST Mainboard listed company, which specialises in manufacturing high quality precision aluminium extrusion products and precision metal components, regarding its proposed fund raising activity comprising the allotment and issue of up to 62,500,000 shares by the Company to New Impetus Strategy Fund, an exempted company incorporated in the Cayman Islands, at an issue price of S$0.80 per subscription share. In addition, the firm also advised the Company on its proposed bonus warrants issue of up to 27,119,659 bonus warrants at an exercise price of S$1.00 for each bonus warrant, representing a premium of approximately 69.49% to the VWAP of S$0.59 per share traded on the Mainboard on the last market day preceding the Company’s announcement of said issuance.
The proposed subscription will raise substantial funds which will enable the Company to explore business diversification opportunities and generate additional revenue streams. In addition to enhancing shareholders’ value, this will also enable the Company to reduce reliance on its core business, which faces escalating price pressure and lower profitability due to the electronics and precision engineering segment being affected by the recent poor sentiment in the global economy generally. The proposed bonus warrants issue will also further increase the Company’s capital base, strengthen its balance sheet and provide it with additional financial flexibility and liquidity. The ZICO Insights Law team on the deal is led by Yap Lian Seng and Dr Qiu Yang.
NOTE: Completion date is only to be disclosed after 15/04/18.
