01:29 AM EDT, 09/22/2021 (MT Newswires) -- China Star Food (SGX:42W) agreed to allot and issue 500 million new ordinary shares at SG$0.024 apiece to raise SG$12 million ($8.9 million), according to a Tuesday release.
Shares of the potato farming company surged 21% in Wednesday's morning trade.
The issue price equals the volume-weighted average price of the company's shares based on the trades done on the Singapore Exchange on Tuesday.
The 10 existing and three new subscribers will altogether hold 64.96% of China Star's enlarged issued share capital, with Executive Chairman and Chief Executive Officer Liang Chengwang and substantial shareholder PTS Capital holding the majority share of 15.94% and 14.88%, respectively.
Proceeds will be used to meet the paid-up share capital requirement of subsidiary Fujian Zixin Biological Potato, expand business in Singapore and for working capital purposes.
Price (SGD): S$0.03, Change: S$0.01, Percent Change: +20.83%