Wing Lee to raise up to $94.6m in net proceeds from share placement

The placement will represent 10% of the group's existing issued shares.

Wing Lee Development Construction Holdings Limited entered into a placing agreement on 28 October to issue up to 100 million shares at $0.97 each to at least six independent investors on a best-efforts basis.

The placement will represent 10% of Wing Lee's existing issued shares and approximately 9.09% of its enlarged share capital, assuming all shares are placed and there is no change in issued share capital before completion.

Estimated gross proceeds and net proceeds amount to approximately $97m and $94.6m, respectively.

Wing Lee said it would use 60% of net proceeds, or approximately $56.76m, to develop and expand the group's new energy business.

This includes battery energy storage systems, integrated charging, battery-swapping and energy storage stations, and other renewable energy-related projects such as artificial intelligence data centre energy infrastructure.

The remaining 40%, or approximately $37.84m, will finance the group's working capital for its construction and engineering businesses.

Wing Lee said the net proceeds will enable the group to strengthen its existing engineering business whilst capturing emerging opportunities in the renewable energy sector.