Singaporean shipbuilding and repair group Otto Marine has announced expansion plans funded by a move to raise S$92.6 million (US$65.9) in net proceeds by selling 220 million new shares.
The firm is doing a private placement of the shares at 43.2 cents apiece (US$0.307), 9.8 percent lower than the weighted average price of 47.91 cents on the Singapore Exchange on January 22 – the last trading day prior to the signing of the sale deal last Monday.
The new shares represent about 13.2 per cent of the firm's issued shares.
Up to 53 per cent of the proceeds will be invested into the group's new specialised offshore services segment. Another 30 per cent will earmarked for chartering fleet expansion. The remaining 17 per cent will be used for general working capital purposes.