Ramba Energy to raise S$2.79m from second share placement

RAMBA Energy will issue nine million new shares at a placement price of S$0.32 each for net proceeds of S$2.79 million.

Of the proceeds, S$2.29 million will be pumped into its oil & gas business, while some S$0.5 million will be used for the general working capital of the group.

In a filing to Singapore Exchange (SGX) on Thursday morning, Ramba Energy said the second share placement agreement with Win World Profits and Harry Wangidjaja was signed on Wednesday.

In April, the group made its first placement agreement with Wing Harvest.

Under the first agreement, 68 million new shares have been proposed to be issued.

Together with the second placement shares, they will represent about 19.8 per cent of the issued and paid-up share capital of the company.

The price of S$0.32 for each second placement share represents a discount of 9 per cent to the volume-weighted average price of S$0.3515 for each share for trades done on the company's shares that were last traded on Monday.

A trading halt was called the next day.

Upon completion of both placements, the issued and paid-up share capital of Ramba Energy will increase to more than 464 million ordinary shares.

The second placement shares will then represent about 1.9 per cent of the company's enlarged share capital.

RHB Securities Singapore is the placement agent in the second placement transaction.

Win World Profits is a British Virgin Islands-incorporated company which is wholly owned by Albert Yeung, founder and chairman of the Emperor Group.

Mr Wangidjaja is an Indonesian national and is investing in the shares of the company on his own personal basis, said Ramba Energy.