Singapore: EMS Energy, which is building a new waterfront facility in Tuas as part of its strategy to pursue higher-value engineering solutions for the offshore and oil and gas sector, proposed yesterday that it would raise up to $14.8m in net proceeds via a one-for-one rights issue.
The SGX Catalist-listed provider of engineering solutions, customised equipment and contract manufacturing and packaging solutions is proposing to issue one rights share for each existing ordinary share at an issue price of S$0.02 each. The rights issue will be renounceable and non-underwritten.
EMS has announced that it intends to take on larger engineering projects and will house all its various services such as painting, blasting and machining – currently outsourced – under one roof at the new facility.
EMS has leased from Jurong Town Corporation a 23,238 sq m parcel of land in Tuas – which comes with a 106 m waterfront boundary – for 16 years and eight months commencing 1 May 2014. It will construct a new facility, which will be five times bigger than its current premises, also in Tuas.
“The new facility will allow EMS to pursue larger projects offering higher margins. It will be a strategic move that will allow us to increase our capabilities, reduce operational costs and dependence on third-party sub-contractors and achieve economies of scale,” said executive chairman and ceo of EMS, Ting Teck Jin. [06/05/14]