Swing Media Technology Group Limited (Swing Media) will be raising S$5.1 million in net proceeds from a new share placement to seven investors – including two discretionary account clients – managed by Hong Kong-based Look’s Asset Management Limited (LAM).
LAM is a Hong Kong-based asset management company licensed by the Securities & Futures Commission of Hong Kong. It manages a diverse range of asset classes, with its primary vehicle a merger and acquisition (M&A) fund that invests mostly in Hong Kong-listed companies.
Swing Media intends to use the proceeds raised to fund its capital expenditures and business growth plans, potentially through mergers and acquisitions (M&A) or joint ventures with business partners.
Under the terms of the agreement, Swing Media, under its existing shareholder mandate to issue new shares, will place a total of 8,549,997 shares priced at S$0.60 per share to clients of LAM.
According to details in a filing, the placement price represents a premium of 3.44 per cent to the volume weighted average price of S$0.58 for the trades done on the SGX for the full market day on 19 January 2017, the last trading day preceding the day on which the placement agreements were signed.
Commenting on the proposed share placement, Timothy Shen, Group Chairman of LAM, said, “Our clients are pleased to enter into this agreement with Swing Media. Apart from the company’s attractive valuation compared to its peers on the HKSE, its strong track record of profits and dividends also offers investors a golden opportunity to be part of its future growth.”
“We see Swing Media’s business expansion plans as an exciting driver of growth for the firm. We are excited by the potential it holds for the firm and are confident of its strategy and management team,” he adds.
“This is an exciting chapter for Swing Media and we are heartened by the confidence that Look’s Asset Management has shown in us,” Matthew Hui, Executive Director of Swing Media said.
According to Hui, the investment represents an endorsement of “strong business fundamentals and positive growth prospects” that will see Swing Media continue to explore potential M&A opportunities and seek possible joint ventures (JVs) to deliver sustainable long-term growth and shareholder value.