Geo Energy to raise up to S$14.9 million via proposed share placement

[SINGAPORE] Mainboard-listed coal producer Geo Energy Resources intends to raise gross proceeds of up to S$14.9 million through a proposed placement of 35 million new ordinary shares. 

The group announced on Thursday (Mar 5) that it has entered into a placement agreement with KGI Securities (Singapore), which will act as the placement agent.

The placement price has been set at S$0.425 per share. 

This represents a discount of about 4.5 per cent to the volume-weighted average price of S$0.445 for trades done on Mar 3, the last full market day prior to the execution of the agreement and a trading halt.

If fully placed out, the new shares will represent about 2.1 per cent of Geo Energy’s existing issued and paid-up share capital, and around 2 per cent of its enlarged share capital.

Geo Energy said that the primary objective of the exercise is to enhance the group’s capital structure and financial flexibility, while simultaneously broadening its shareholder base.

The group intends to deploy 100 per cent of the net proceeds – estimated at S$14.3 million after deducting roughly S$550,000 in fees and commissions – towards working capital purposes.

On a pro forma basis, assuming the placement had been completed at the end of 2025, the group’s net tangible assets per share would see a marginal increase from S$0.4034 to S$0.4035.

However, earnings per share for the full year 2025 would be diluted from S$0.0248 to S$0.0242, assuming the placement had been completed on Jan 1, 2025.

Completion is subject to several conditions, including in-principle approval from the Singapore Exchange for the listing and quotation of the new shares.

Geo Energy called for a trading halt on Wednesday morning and lifted the trading halt on Thursday morning. 

The counter last traded at S$0.445, S$0.015 or 3.5 per cent higher on Tuesday.