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SG AVJ to raise S$52.6 million

Property Here - Thursday, April 25, 2013

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By Nikki De Guzman:

AVJennings (AVJ), the Australia-listed arm of Singapore developer SC Global, is undertaking a 2-for-5 non-remounceable pro rata entitlement offer that aims to raise AU$41.2 million (S$52.6 million) to cut its debt and bolster working capital requirements. 

Under the offer, the Australian builder will issue new ordinary shares for every five existing ordinary shares held as of 3 May (Record Date) by AVJ unitholders with a registered address in Singapore, Australia, New Zealand or in other countries where AVJ decides to make offers. 

Each share comes with an issue price of AU$0.375 (S$0.48), representing a 4.5 percent discount to the volume-weighted average price of AJV’s shares on the 20 trading days until 19 April.

AVJ’s major stockholder, SC Global, had also agreed to take up all of AVJ’s entitlement in respect of its entire shareholding. Currently, SC Global owns 50.03 percent of AVJ’s shares.

The offer is expected to raise net proceeds of about AU$39.2 million (S$49.89 million), if fully subscribed. Overall, 109.8 million new shares are expected to be issued.

 

Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg