SINGAPORE: Mainboard-listed offshore marine services provider Vallianz Holdings has secured US$10 milllion (S$13.5 million) through the issue of 10 million convertible preference shares at US$1 apiece.
These will be issued at US$1 each to United Orient Capital Fund (UOC Fund), jointly held by United Overseas Bank Limited and Orix Corporation. The fund invests in mid-sized firms with mature operations, strong cash flow and good management teams.
The net proceeds of US$9.5 million will go towards fleet expansion (70-80 per cent of proceeds), with the remainder going to general working capital, Vallianz said in a filing with Singapore Exchange on Thursday. The existing bank facilities and working capital available to the group are sufficient to meet current requirements, it added.
Said Vallianz CEO Ling Yong Wah: “We appreciate this investment commitment by UOC. Despite the uncertain business environment in the offshore oil and gas industry, we are continuing to expand our operations and remain positive of the group’s long-term outlook. UOC’s investment signals its confidence in Vallianz’s business model, growth and industry prospects.”
