Yangzijiang Shipbuilding to raise $15m from warrant issue
Yangzijiang Shipbuilding has proposed to raise RMB92.17m ($14.82m) in net proceeds from a warrant issue to strengthen its working capital, Seatrade Asia online reports.
The Singapore-listed Chinese shipbuilder will issue an aggregate 330m warrants at an issue price of RMB0.3072 for each warrant, with each warrant allowing the subscription of one new ordinary share at a price of RMB7.617 for each new share. The warrants will expire on 29 April 2016 if they are not exercised.
“With the expectation that the market conditions of the shipping industry will improve gradually over the next few years, the board believes that the net proceeds from the warrant issue will further strengthen the working capital of the company and the proceeds arising from the exercise of the warrants will enhance the capital base of the company and provide additional financial flexibility to the group to facilitate the group's future market expansion and explore potential development opportunities which may be brought to its attention,” Yangzijiang said. The shipyard has appointed Citigroup Global Markets as placement manager for the warrant issue.
