Frencken to raise $100m for expansion, acquisitions via share placement

The company will issue 44.1 million new shares at approximately $2.27 each.

Frencken Group Limited plans to raise about $100m through a placement of new shares to expand manufacturing capacity and fund potential acquisitions, joint ventures, and strategic investments.

The company will issue 44.1 million at approximately $2.27 each, with the placement expected to generate net proceeds of about $97.1m, according to a bourse filing.

Approximately $87.4m, or 90% of the net proceeds, will fund business expansion and potential strategic investments, including mergers and acquisitions, joint ventures, and strategic alliances.

Frencken said the investments may include measures to strengthen manufacturing capacity and capabilities in its Mechatronics and Advanced Plastics Solutions divisions.

The remaining $9.7m will be used for working capital requirements and/or repayment of bank borrowings.

The placement price represents a discount of about 10% to the group’s volume-weighted average share price of $2.5207 on 25 August, the last full trading day before the placement agreement was signed.

The placement shares represent about 10.27% of Frencken’s existing issued shares and 9.31% of its enlarged share capital following the placement.

The placement is expected to be completed on 3 September, subject to conditions including approval from the Singapore Exchange for the listing of the new shares.

Maybank Securities is the sole placement agent.

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Frencken Group Limited

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