<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 5, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Sinotel raising net $13.6m from placement
China-based telecom service provider's new shares priced at 50.52 cents each
By LYNETTE KHOO
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SINOTEL Technologies has proposed to issue up to 28 million new shares at a placement price of 50.52 cents apiece. The $13.58 million of estimated net proceeds will be used to fund general working capital, the China-based telecom service provider said yesterday.
The placement price is about 19.99 per cent lower than the weighted average price for trades done on Sinotel shares on Sept 2, a day before the trading halt. The deal is subject to Singapore Exchange approving the listing and quotation of the placement shares.
The placement shares, assuming full subscription, will represent 10 per cent of Sinotel's existing issued share capital. It, therefore, does not require further shareholders' approval.
A general mandate from shareholders was earlier obtained at the annual general meeting held on April 27, for new shares issued other than on a pro rata basis to existing shareholders not to exceed 20 per cent of the group's issued share capital. When completed, the placement shares will represent 9.09 per cent of the enlarged capital of 308 million shares.
It will also raise the group's net assets value per share as at June 30 from 159.6 fen to 165.9 fen. Its earnings per share as at June 30 would dip from 25.1 fen to 22.9 fen, assuming that the placement took place at the beginning of the current financial year. This placement is non-underwritten and the placement agent, UOB-Kay Hian, will receive a commission of 4 per cent of the placement price for each placement share subscribed. The placement shares will be placed by the placement agent to interested investors which include Providence SOGF Limited, a fund specialising in private investment in public equity (PIPE) and late stage private equity transactions.
Last month, Sinotel also attracted investments from US funds. Funds managed by Andrew Barron Worden owned more than 5 per cent of the total shareholdings of the group, which was pared down to 4.33 per cent at the end of August. The group is mulling the setting up of an American Depositary Receipt (ADR) facility in the US to trade over-the-counter there. It is in discussions with The Bank of New York Mellon, US lawyers and other professionals with the view of forming a team for this purpose.
Sinotel said last month that an ADR facility will enable it to attract foreign investors and to expand its investor base and trading liquidity of its shares. There is no fixed timeline for this.
The stock closed one cent lower or 1.59 per cent at $0.62 yesterday.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Sinotel raising net $13.6m from placement
China-based telecom service provider's new shares priced at 50.52 cents each
By LYNETTE KHOO
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>SINOTEL Technologies has proposed to issue up to 28 million new shares at a placement price of 50.52 cents apiece. The $13.58 million of estimated net proceeds will be used to fund general working capital, the China-based telecom service provider said yesterday.
The placement price is about 19.99 per cent lower than the weighted average price for trades done on Sinotel shares on Sept 2, a day before the trading halt. The deal is subject to Singapore Exchange approving the listing and quotation of the placement shares.
The placement shares, assuming full subscription, will represent 10 per cent of Sinotel's existing issued share capital. It, therefore, does not require further shareholders' approval.
A general mandate from shareholders was earlier obtained at the annual general meeting held on April 27, for new shares issued other than on a pro rata basis to existing shareholders not to exceed 20 per cent of the group's issued share capital. When completed, the placement shares will represent 9.09 per cent of the enlarged capital of 308 million shares.
It will also raise the group's net assets value per share as at June 30 from 159.6 fen to 165.9 fen. Its earnings per share as at June 30 would dip from 25.1 fen to 22.9 fen, assuming that the placement took place at the beginning of the current financial year. This placement is non-underwritten and the placement agent, UOB-Kay Hian, will receive a commission of 4 per cent of the placement price for each placement share subscribed. The placement shares will be placed by the placement agent to interested investors which include Providence SOGF Limited, a fund specialising in private investment in public equity (PIPE) and late stage private equity transactions.
Last month, Sinotel also attracted investments from US funds. Funds managed by Andrew Barron Worden owned more than 5 per cent of the total shareholdings of the group, which was pared down to 4.33 per cent at the end of August. The group is mulling the setting up of an American Depositary Receipt (ADR) facility in the US to trade over-the-counter there. It is in discussions with The Bank of New York Mellon, US lawyers and other professionals with the view of forming a team for this purpose.
Sinotel said last month that an ADR facility will enable it to attract foreign investors and to expand its investor base and trading liquidity of its shares. There is no fixed timeline for this.
The stock closed one cent lower or 1.59 per cent at $0.62 yesterday.
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