Koh Brothers Eco Engineering Limited has announced a renounceable underwritten rights issue to raise approximately S$27.6m. The company plans to issue up to 563,644,184 new ordinary shares at S$0.049 each, offering one new share for every five existing shares held by eligible shareholders. The initiative is designed to bolster the company’s working capital and fund capital expenditures.
The rights issue, which is underwritten by SAC Capital Private Limited, offers a 30% discount to the volume-weighted average price of S$0.070 per share as of 29 October 2026. The net proceeds, estimated at S$27.1 million after expenses, will be directed towards operational expenses, payments to subcontractors, and potential repayment of bank borrowings.
Koh Brothers Eco Engineering’s major shareholders, including Koh Brothers Group Limited and Penta-Ocean Construction Co., Ltd., have committed to subscribing to their full allotment of rights shares. This commitment ensures the rights issue will be fully subscribed, subject to the terms of the underwriting agreement.
The company, which recently transferred its listing to the Mainboard of the Singapore Exchange, will announce further details regarding the offer information statement and the record date for eligible shareholders. This strategic move aims to strengthen the company’s financial position and support its ongoing construction projects.
