Federal Int'l to raise $13m through share placement


FEDERAL International (2000) is raising a net $13.44 million from a share placement.

The mainboard-listed company, which distributes and provides turnkey engineering, procurement and construction solutions for the energy and infrastructure industries, is placing 42 million new shares, or 19.97 per cent of its issued share capital, at 33 cents each to strategic investors. OCBC Securities is the placement agent.

Federal said it will be using the proceeds to fund acquisitions or investment in assets and businesses that complement the firm's existing operations, with the balance held for working capital.

Market sources said Federal is looking at a few potential business investments or deals.

Last week, Federal entered into a 60:40 joint venture with Longzhu Oilfield Services to set up Federal Offshore Services to tap business opportunities in the marine logistics and offshore oil and gas sector.

Federal said that its investment in Federal Offshore, which has a paid-up capital of US$2.28 million, will be funded internally.

The placement price represents a discount of about 9 per cent to the weighted average price of 36.3 cents on Tuesday.

Federal's share price closed at 38.5 cents yesterday, up 2 cents from the previous day's close.

When completed, the placement will increase the issued and paid-up share capital of the company from 175,259,875 shares to 217,259,875 shares.

Its net tangible assets per share will increase from 30.69 cents to 31.85 cents.

For the half year ended June, Federal's net profit rose 27.3 per cent year-on-year to $2.45 million despite a 46.5 per cent fall in revenue to $37.2 million from a restated $69.4 million.

'This is due to the fact that last year's results reflected a share of losses in associates amounting to $2.3 million,' said Federal.

《The Business Times》


<<< 回企业公关网

读者反馈 | 封面 | 新加坡 | 国际/中港台/东南亚 | 财经 | 体育 | IT | 社论/言论/天下事 | 文萃 | 现在