ASTI Holdings has proposed the placement of 128 million new ordinary shares in the capital of the company for 2.5 cents per share, raising up to $3.2 million.

 

The placement shares represent about 19.55% of the existing issued and paid-up share capital of the semiconductor manufacturing services company, comprising 654,731,486 shares.

 

The company says that the placement price represents a premium of approximately 78.57% to the volume weighted average price (VWAP) of 1.4 cents per share for trades done on the shares on the SGX-ST for the full market day on July 4, 2022 being the last full market day prior to the trading suspension called by the company.

 

The placement price also represents a discount of 51.42% to the latest group&rsquo s audited net tangible assets (NTA) as of Dec 31, 2024, of $33,695,000.

 

ASTI Holdings says that it will rely on the existing general share issue mandate approved by shareholders at an EGM held on Aug 15, 2025, which saw that the aggregate number of shares and convertible securities is no more than 130,946,297 shares.

 

As such, the proposed issuance of 128,000,000 new shares will be within the limits of the general mandate and specific approval of the shareholders will therefore not be required, the group notes.

 

In conjunction with the resumption of trading of shares, ASTI is of the view that it is an opportune time to undertake the proposed placement to fund its business expansion.

 

This includes potential new businesses with existing customers, research and development on equipment to improve the yield rate for our products and working capital.

 

About 60% of the net proceeds from the proposed placement will be used for business expansion, 30% for research and development, and 10% for working capital.

 

The effects of the proposed placement on the company&rsquo s share capital will result in an increase of shares to 782,731,486 shares excluding treasury shares.

 

Earnings after the proposed placement will widen to a net loss of $24.7 million, and earnings per share will decrease to a net loss per share of 3.15 cents.

Group revenue rose 9.2% year-on-year to S$27.0 million for the nine months ended 30 September 2025, led by increased orders in backend equipment solutions & technologies.

 

Net profit reached S$1.3 million, reversing a S$4.8 million net loss in the same period last year as gross margin more than doubled to 26.7% and administrative expenses dropped 18%.

 

Loans and borrowings were fully repaid, slashing current liabilities from S$14.7M to S$6.4M cash and cash equivalents stood at S$16.6 million as at end-September.

 

Group&rsquo s net asset value per share was 5.03 cents, up from 5.15 cents at end-2024.

 

No dividend declared for the period due to focus on cash preservation and market uncertainty.

 

Board remains cautiously optimistic and will continue to explore new opportunities in semiconductor and related sectors, monitoring global trends and potential business risks.

 

ASTI Holdings has received a letter of demand (LOD) from law firm, ShookLin & Bok on Sept 13. The LOD was about an outstanding payment of $46,541.99 that ASTI allegedly owes the law firm. The amount is for invoices dated June 15, 2023 Feb 5 and March 5, says ASTI.

 

The company says it is assessing the basis and merits of the LOD and will seek legal advice accordingly. The LOD and any potential legal proceedings related to the matter are not expected to affect the company&rsquo s business operations. Any repayment is also not expected to impact the company&rsquo s financial position materially.

 

 

ASTI Holdings has reconstituted its board of directors following the appointment of substantial shareholders Ng Yew Nam and Soh Pock Kheng as new directors and the exodus of its previous board on Jan 15.

 

On Jan 16, the company announced that both Ng and Soh had been appointed executive directors, with Ng also taking on the role of CEO.

 

In addition, Chow Wai San, Raymond Lam and Alvin Yap have been appointed independent non-executive directors. Chow will also serve as chairman of the board of directors.