CSE Global raises S$24 million from share placement

CSE Global has raised gross proceeds of S$24 million from a share placement to fund strategic acquisitions and investments in its core markets.

The group said on Monday (Mar 25) that the exercise involved the placement of 60 million new ordinary shares at S$0.40 apiece, representing a discount of 6.6 per cent to the volume weighted average price of S$0.4281 per share on Mar 13.

The counter closed unchanged at S$0.435 on Monday.

CSE Global, a mainboard-listed automation solutions provider, plans to evaluate investment opportunities in the US, Australia and New Zealand.

The new shares will enlarge the company’s share base by 9.71 per cent to 678.11 million shares.

Based on unaudited statements for FY2023, pro forma net tangible assets as at Dec 31 will increase from 19.96 Singapore cents per share to 21.62 Singapore cents per share.

Earnings per share will be diluted from 3.66 Singapore cents to 3.34 Singapore cents.

The listing of the placement shares is expected to commence at 9 am on Mar 26.

The shares are eligible for the final one-tier tax-exempt cash dividend of 1.5 Singapore cents for each share recommended by the board, and subject to approval by shareholders.

Maybank Securities was the sole agent for the placement.