Singapore’s Reebonz fixes price for $10.8m stock, warrant offerings

Reebonz CEO Samuel Lim
Samuel Lim, founder and chief executive officer of Reebonz Pte, poses for a photograph at the company's headquarters in Singapore, on Friday, Jan. 2016. Photographer: Nicky Loh/Bloomberg

Nasdaq-listed luxury items e-tailer Reebonz Holding Limited has announced that it will be offering 2.15 million ordinary shares, plus a warrant option, at a combined offering price of $5 apiece.

The gross proceeds is expected to be $10.8 million, lower than the previously revised $27.6 million offering made on April 12, 2019.

Reebonz has granted the underwriters (Roth Capital Partners, Maxim Group LLP, and co-manager Aegis Capital Corp) a 30-day option to purchase up to 322,500 ordinary shares/warrants to cover over-allotments.

If the over-allotment is exercised in full, the total gross proceeds are expected to be $12.4 million. The offering is expected to close on April 17, 2019, subject to closing conditions.

Reebonz shares were immediately hit by waves of volatility following the formal announcement of the new pricing terms for the ordinary shares and warrant issuance on April 15.

The stock fell from the previous closing price of $11.49 on April 12 to close the market trading session at $5.10, down $6.39 or 55.61 per cent intraday decline. During the regular market hours in New York, the stock experienced several bouts of intermittent pauses and starts due to the low public share float which attracted traders’ attention.

The overall trading volume came in at close to 7.6 million shares, and is higher than the three-month average trading volume of 792,017 shares, according to data from Yahoo! Finance.During after-market hours trading, the stock price of Reebonz rose back up 10 cents, or 1.96 per cent at $5.20.