It plans to raise a total of S$2.2m from placing out up to 6.5m new shares at S$0.3351 each

 

SHARES of LHN rose to an all-time high on Friday morning after the Catalist-listed property group announced plans to raise S$2.2 million through a private placement.

 

As at 9.40am, the counter had climbed nine Singapore cents or 24.3 per cent to reach a historical peak of 46 cents before ending the day at 42.5 cents, up by 5.5 cents or 14.87 per cent.

 

No married deals were recorded throughout the day, according to ShareInvestor data.

 

LHN on Friday morning announced that it will raise a total of S$2.2 million from placing out up to 6.5 million new shares, at 33.51 Singapore cents each, on the Catalist board of the Singapore Exchange (SGX) under its general mandate.

 

Assuming that all the shares are fully placed out, LHN is expecting net proceeds of S$2.1 million which it intends to use for general working capital purposes. This will include renovation costs of the group' s properties as well as operating expenses, said the group in its filing before markets opened.

 

The placement price represents a discount of about 10 per cent of the weighted average price of 37.23 cents per share for trades done on the SGX on Thursday.

 

It represents a premium of 6.2 per cent to the Thursday closing price of HK$1.85 per share on the Hong Kong Stock Exchange, which LHN is also traded on.

 

The total placement shares amount to 1.62 per cent of the existing issued share capital of LHN of about 402.4 million shares. Post the placement, they will comprise 1.59 per cent of the enlarged share capital of the company of 408.9 million shares.

 

Soochow CSSD Capital Markets has been appointed as the placement agent for the deal.

 

LHN' s private share placement exercise comes days after the group said it was " aggressively looking" to acquire properties to purchase for its co-living business, Coliwoo Holdings.

 

The company made this comment as part of a June 9 disclosure announcing that Coliwoo had contributed an additional S$499,999 to the issued and paid-up ordinary share capital of a joint venture.

PROPERTY player LHN is on the prowl for properties to purchase for its co-living business, the Catalist-listed company said in a Wednesday bourse filing.

 

It said: " Encouraged by the current high occupancy of existing its Coliwoo properties, the group is aggressively looking to acquire more of such strategic properties to add on to its Coliwoo co-living residential portfolio, in line with the group' s business road map."

 

The company made the comment as part of a disclosure announcing that its unit, Coliwoo Holdings, has contributed an additional S$499,999 to the issued and paid-up ordinary share capital of a joint venture (JV). The JV partner also contributed the same additional amount.

 

The capital contribution will pay in part for the acquisition of a property at 40 and 42 Amber Road for S$27 million. The acquisition was completed on Wednesday.