After easing Raffles Education&rsquo s debt burden, CEO Chew Hua Seng is betting on Asean to power the former market darling&rsquo s next phase of growth

 

Two decades ago, at the height of the local market&rsquo s last bull run, Raffles Education was a standout favourite. Investors bought into CEO Chew Hua Seng&rsquo s pitch that the group was well placed to ride a surge in demand for higher education across the region.

 

After peaking above $3.50 in 2007, the company&rsquo s shares entered a long decline, falling to four cents in 2024 amid mounting debt pressures and softer student enrolment. The situation was compounded by a long-running feud between Chew and substantial shareholder Oei Hong Leong, alongside a series of legal disputes.

 

In recent years, Raffles Education has mostly made headlines for sporadic updates on property divestments in Singapore as it sought to lighten its debt load. Sentiment turned sharply earlier this year. The company sold its 51 Merchant Road property for $121.8 million, below its June book value of $152.7 million, but still recorded a net gain of $53 million, which will be used to reduce debt.

 

Chew, the controlling shareholder, has also increased his stake. Last October, he said he would convert about $16.5 million of unlisted convertible bonds into new ordinary shares at 6.44 cents each, instead of seeking repayment. He also elected to receive scrip shares in lieu of cash for his entitlement to the special dividend funded by the divestment of 51 Merchant Road.

 

 

 

After easing Raffles Education&rsquo s debt burden, CEO Chew Hua Seng is betting on Asean to power the former market darling&rsquo s next phase of growth

 

Two decades ago, at the height of the local market&rsquo s last bull run, Raffles Education was a standout favourite. Investors bought into CEO Chew Hua Seng&rsquo s pitch that the group was well placed to ride a surge in demand for higher education across the region.

 

After peaking above $3.50 in 2007, the company&rsquo s shares entered a long decline, falling to four cents in 2024 amid mounting debt pressures and softer student enrolment. The situation was compounded by a long-running feud between Chew and substantial shareholder Oei Hong Leong, alongside a series of legal disputes.

 

In recent years, Raffles Education has mostly made headlines for sporadic updates on property divestments in Singapore as it sought to lighten its debt load. Sentiment turned sharply earlier this year. The company sold its 51 Merchant Road property for $121.8 million, below its June book value of $152.7 million, but still recorded a net gain of $53 million, which will be used to reduce debt.

 

Chew, the controlling shareholder, has also increased his stake. Last October, he said he would convert about $16.5 million of unlisted convertible bonds into new ordinary shares at 6.44 cents each, instead of seeking repayment. He also elected to receive scrip shares in lieu of cash for his entitlement to the special dividend funded by the divestment of 51 Merchant Road.