Singapore Companies
Published September 7, 2006

SC Global places out 24m shares
Strong institutional support; estimated net proceeds of $46.3m


By UMA SHANKARI



UPMARKET residential developer SC Global Developments announced yesterday that it has placed out 24 million new shares at $1.95 each - for estimated net proceeds of $46.3 million - to international institutional investors.


SC Global said that the placement - through UOB Kay Hian - was fully taken up, with strong institutional support from the the United States, Japan, Middle East and Singapore.

'This share placement serves to enlarge our share capital and shareholder base as well as strengthen our balance sheet for future growth,' said SC Global's chairman and chief executive Simon Cheong.

A 'substantial portion' of the net proceeds will be used for existing and/or proposed investments of SC Global, and may also be used for general working capital purposes, the company said.

The new placement shares represent about 20 per cent of the total number of existing shares in the firm, SC global said.

The new shares' issue price represents a price discount of 4.2 per cent from the weighted average price of $2.04 based on trades done on Tuesday - the market day preceding the signing of the placement agreement.

SC Global's shares were on a trading halt yesterday. Trading resumes today.

The placement subscription's completion - which is expected to take place before end-September - is conditional upon in-principle approval for the listing and quotation of the new shares.

SC Global said that with the placement, the issued share capital of the company will increase to $126.1 million, from $79.3 million at present - assuming that none of the company's outstanding warrants are exercised.

This year, SC Global bought Paterson Tower on Paterson Hill and Hilltops at Cairnhill Circle and some surrounding terrace houses in collective sale deals totalling $650 million. And Mr Cheong has said that he is on the lookout for more such sites in Singapore's prime locations.

SC Global had $63.2 million in cash and cash equivalents as at June 30.

Assuming that the placement was completed on or before June 30, 2006, the group's cash holdings would increase to about $110 million, said SC Global.