CSE Global 544 -1.19% has announced securing a contract variation worth US$36.5 million ($49.2 million) in the Americas on April 18.

 

The project is an extension to the contract the company initially secured in 1Q2022 for the data centre market. 

 

The new contract encompasses the design, engineering, fabrication, installation and integration of power management systems and solutions, which are slated for execution from 1Q2024 to 1Q2025. 

 

Group managing director Lim Boon Kheng says: &ldquo The award of this contract exemplifies the confidence and trust of our customers in our solutions and services. The data centre market continues to grow due to increased demand for cloud services. We are also investing to double our manufacturing and integration capacity to support this contract.&rdquo

 

While the contract is not expected to have any material impact on the consolidated net tangible assets per share or earnings per share of the company for the FY2024 ending Dec 31, the project is expected to contribute positively to CSE&rsquo s financial performance for the FY2024 and FY2025.

CSE Global 544 1.15% has raised a total gross proceeds of $24 million from its share placement of 60 million new ordinary shares, attracting strong demand from institutional and accredited investors.

 

The issue price per share for the placement shares was 40 cents, representing a discount of approximately 6.6% to the volume weighted average price of 42.81 cents per share on March 13, the last full market day preceding the date the placement agreement for the share placement was signed.

 

Including the placement shares, CSE Global&rsquo s share base has been enlarged by 9.71% to approximately 678.11 million shares. 

 

Based on the unaudited financial statements of the group for the FY2023 ended Dec 31, 2023, its pro forma net tangible assets per share as at end-2023 will increase from 19.96 cents to 21.62 cents, and its earnings per share will be diluted from 3.66 cents to 3.34 Singapore cents. 

 

CEO Lim Boon Kheng says: &ldquo We are heartened by the interest in the share placement and thankful to have the strong support from investors, which illustrates confidence in CSE Global&rsquo s growth potential. We see opportunities arising on the back of megatrends such as urbanisation, electrification and decarbonisation.&rdquo

 

&ldquo The proceeds raised will strengthen our balance sheet, enabling us to leverage these trends and pursue further inorganic growth through strategic acquisitions or investments primarily in our core markets, including the US, Australia and New Zealand,&rdquo he adds.

 

The listing of the placement shares on the SGX-ST is expected to commence at 9.00 am on March 26.

 

The placement shares are eligible for the final one-tier tax-exempt cash dividend of 1.5 cents per share recommended by the CSE directors, subject to approval by shareholders at the group&rsquo s annual general meeting on April 29.

 

Maybank Securities acted as sole placement agent for the share placement.

CSE Global : 544 -2.35% on Thursday (Mar 14) proposed a placement of 60 million new shares to raise S$24 million for strategic acquisitions and investments.

 

Each new share will be priced at S$0.40. This represents a discount of 6.6 per cent from the stock&rsquo s volume-weighted average price of S$0.4281, based on trades completed on Wednesday &ndash the last full trading day before the placement agreement was signed.

 

The mainboard-listed automation solutions provider said that the share placement will be made to eligible institutional, accredited and other investors.

 

The 60 million new shares represent 9.8 per cent of the existing 614.9 million shares in issue, excluding treasury shares. Post-placement, they will comprise 8.9 per cent of the enlarged share capital.

 

If the proposed placement was completed on Jan 1, 2023, CSE Global&rsquo s earnings per share would have fallen to 3.34 Singapore cents from 3.66 cents before the placement, based on pro forma estimates.

 

It plans to use the net proceeds of S$23.2 million from the placement to pursue more inorganic growth, through strategic acquisitions or investments. This will be primarily in its existing markets, including the US, Australia and New Zealand.

 

The company, which listed on the Singapore Exchange in 1999, is led by Lim Boon Kheng, its group managing director and chief executive.

 

In February 2023, the group acquired Radio One for US$11 million. The Florida-based communications solutions company provides voice, video and data solutions to consumers.

 

The group is also growing its provision of critical communications services &ndash or closed networks &ndash to government agencies and large multinational corporations, it previously told The Business Times in an interview.

 

CSE Global said it will rely on the existing general share issue mandate approved by the company&rsquo s shareholders at the annual general meeting held on Apr 20, 2023, which means shareholder approval will not be required.