ValueMax rights issue: expects to raise $41.7 mil
with 5-for-1 rights issue
Through a one-for-five rights offering to shareholders, ValueMax plans to raise $41.7 million. The group’s financial situation and capital base are expected to be strengthened by the rights issuance.
In a statement dated April 13, the company claims it is looking at “other ways of fundraising” in addition to borrowing money from outside sources and issuing debt instruments to help strengthen its balance sheet.
The group announced on the same day that it plans to issue up to 116.4 million additional ordinary shares in the company’s capital in a non-renounceable non-underwritten ValueMax rights issue.
Shareholders can purchase one rights share for every five existing ValueMax shares for 36 cents.
The issue price is 8.116 percent lower than the volume weighted average price (VWAP) of 39.18 cents per share for shares traded on the mainboard on April 9th, the last full trading day before the announcement.
The price is also 6.856% lower than the theoretical ex-rights price of 38.65 cents per share, which is the potential market price of each share provided all rights shares are issued.
The entire issued and paid-up share capital of ValueMax will grow from 582,005,613 to 698,406,735 shares if all 116,401,122 shares are issued.
Yeah Holdings, the business’s majority shareholder, will provide an irreversible undertaking in the company. Yeah Holdings owns 375.5 million shares, or 64.52 percent of the company’s stock.
Yeah Holdings will own approximately 68.58 percent of ValueMax’s overall voting rights, assuming that the group’s shareholders subscribe for their pro rata entitlement to the rights shares and none of the surplus ValueMax rights issue.
ValueMax’s managing director and CEO Yeah Hiang Nam and his wife Tan Hong Yee hold 70% of Yeah Holdings, while ValueMax’s executive director Yeah Lee Ching owns 10% and Yeah Chia Kai owns 10%.
About Value Max
ValueMax Group Limited and its subsidiaries (“ValueMax” or the “Group“) offer pawnbroking, secured moneylending, and retail and trading of pre-owned jewelry and gold. ValueMax is one of the most renowned and reputable pawnbroking chains and gold merchants in Singapore, having opened its first pawnbroking shop in 1988. ValueMax has expanded to 34 outlets in Singapore in key locations island-wide, and has two more pawnshops managed by related and investee firms, based on its excellent track record and in-depth industry experience. ValueMax has a total of ten stores throughout Malaysia, which are run by its affiliated firms.
