SGX IHS McCloskey M42 - Indonesian 4200kc GAR FOB Thermal Coal Futures

The placement price has been set at S$0.425 per share

 

[SINGAPORE] Mainboard-listed coal producer   Geo Energy Resources   : RE4 +1.12% intends to raise gross proceeds of up to S$14.9 million through a proposed placement of 35 million new shares. 

 

The group announced on Thursday (Mar 5) that it has entered into a placement agreement with KGI Securities (Singapore), which will act as the placement agent.

 

The placement price has been set at S$0.425 per share. 

 

This represents a discount of about 4.5 per cent to the volume-weighted average price of S$0.445 for trades done on Tuesday before a trading halt was called for on Wednesday.

 

If fully placed out, the new shares will represent about 2.1 per cent of Geo Energy&rsquo s existing issued and paid-up share capital, and around 2 per cent of its enlarged share capital.

 

Geo Energy said that the primary objective of the exercise is to enhance the group&rsquo s capital structure and financial flexibility, while simultaneously broadening its shareholder base.

 

The group intends to deploy 100 per cent of the net proceeds &ndash estimated at S$14.3 million after deducting roughly S$550,000 in fees and commissions &ndash towards working capital purposes.

 

On a pro forma basis, assuming the placement had been completed at the end of 2025, the group&rsquo s net tangible assets per share would see a marginal increase from S$0.4034 to S$0.4035.

 

However, earnings per share for the full year 2025 would be diluted from S$0.0248 to S$0.0242, assuming the placement had been completed on Jan 1, 2025.

 

Completion is subject to several conditions, including in-principle approval from the Singapore Exchange for the listing and quotation of the new shares.