Seal Incorporated jumps 42% to 47 sen on expectation of new shareholder after placement TheEdge Tue, May 09, 2023 11:50am - 20 minutes
KUALA LUMPUR (May 9): Seal Incorporated Bhd jumped over 42% to 47 sen, with 36.38 million shares changing hands early on Tuesday (May 9), on expectations of a new major shareholder, following another private placement exercise slated to complete by the third quarter.
According to the company’s Bursa filings, Aaron Chen Khai Voon is subscribing to a 20% stake in Seal via a RM16.2 million placement exercise, which will make the low-profile businessman the largest shareholder of the property developer.
Seal will be placing out 62.29 million shares to Chen at an issue price of 26 sen per share, which marks a 21% discount to the stock’s Monday closing price of 33 sen.
The stock closed up 2.5 sen or 8.2%, giving it a market capitalisation of RM104.72 million.
AmInvestment Bank Bhd has been appointed as the principal adviser and placement agent, while Astramina Advisory Sdn Bhd has been appointed as the financial adviser.
Seal’s current largest shareholders are Datin Seri Tan Guik Lan with a 14.38% stake, followed by her son Koay Shean Loong with 7.99%.
Following the placement to Chen, Tan’s shareholding will be diluted to 11.98%, while Koay’s stake will be reduced to 6.66%.
Chen, 62, would in turn own 16.67% of Seal’s enlarged issued share capital after the placement.
The placement came shortly after Seal completed a 10% private placement in March, raising RM7.08 million mainly earmarked for working capital.
It is worth noting that Chen’s sibling, Chen Siew Chong @ Chin Siew Chong, has also subscribed to Seal’s previous private placement, owning 14.31 million shares equivalent to a 4.6% stake as at April 12.
Last month 's news ? Yet it is still relevant. Mr. Chen Khai Voon is the co-founder of GENETEC.
So, what I hope is that Mr. Chen would not only joint venture with SEAL in renewable energy but also in EV vehicles and /or EV batteries as well, with his first-hand expertise and experience gained from GENETEC .
Even better , if SEAL would collaborate with GENETEC in EV.
This is what I dreamed for but sometimes a dream could turn into a reality.
The prices of SEAL is fluctuating around RM0 40 to RM0.55. closing at RM0.425 today 16-06-2023 (Friday).. To me, there are still chances of moving higher.
Of course, there could be some downward corrections in between too.
After the private placement has been completed, Mr Chen Khai Voon will play the vital role to propel the company to greater heights by venturing into new businesses ( which could include EV as he has the first hand experience. )
I won't think Mr. Chen would keep his private placement funds in SEAL for nothing.
Let's read the Star's report dated 09 May 2023 carefully again.
The group (SEAL) planned to utilise the proceeds for acquisition or investment in new viable business whereby the company is eyeing "renewable energy -related business(es) SEAL executive director Nixon Koay Shean Loong welcomed Chen's equity participation as a "strategic investor '.
" We (SEAL) are looking forward to work with him (Chen Khai Voon) to leverage his "rich " experience in managing diversified business(es). We look forward to Chen's valuable advice, guidance an insight on our potential venture into renewable energy sector , " he said.
It's just a matter of time that Mr Chen Khai Voon (co-founder of GENETEC and the top 30 shareholder as shown in GENETEC' s Annual Report year 2022) will be the substantial shareholder of SEAL.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
XXXvalue
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Posted by XXXvalue > 2021-08-04 18:25 | Report Abuse
that was a sift attack, about an hour and they're gone...hmmm