YZJ Maritime to make mainboard debut on Nov 18, looking to raise S$5.2 million through placement

[SINGAPORE] Yangzijiang (YZJ) Maritime Development, the spin-off from YZJ Financial’s maritime investment segment, is set to raise gross proceeds of at least S$5.2 million through a private placement of about 8.6 million fully paid ordinary shares at a price of S$0.60 per share.

The placement represents about 0.25 per cent of YZJ Maritime’s share capital, which currently totals around 3.5 billion shares, with an issued capital valued at US$1.45 billion.

Upon completion of the distribution and placement, YZJ Maritime expects a market capitalisation of S$2.04 billion.

The company has signed placement agreements with SAC Capital and China International Capital Corp (Singapore) as it prepares to list on the Singapore Exchange (SGX) mainboard on Nov 18, said YZJ Financial in an announcement on Friday (Oct 31).

The move comes a day after YZJ Financial received a conditional eligibility-to-list from SGX for YZJ Maritime.

YZJ Maritime has filed an introductory document dated Oct 31, outlining its plans to list on the SGX mainboard.

As the issue manager and joint placement agent for the listing, SAC Capital anticipates strong investor interest in YZJ Maritime, according to Tan Kian Tiong, its head of capital markets.

Spin-off

YZJ Maritime was incorporated on Apr 28 this year with an issued and paid-up capital of US$100, consisting of 100 ordinary shares at US$1 each.

Shortly after, in July, YZJ Financial incorporated YZJ Maritime as a wholly owned subsidiary in Singapore. In October, the Accounting and Corporate Regulatory Authority approved a subdivision of YZJ Maritime’s share capital from about 1.5 billion to 3.5 billion shares.

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In August, the company disclosed plans to raise up to S$250 million through the placement of new shares to accredited investors and institutional investors.

Commenting on the spin-off from YZJ Financial, YZJ Maritime’s executive chairman and chief executive Ren Yuanlin said on Friday that the move enables the creation of two focused SGX mainboard-listed platforms, each able to “pursue differentiated strategies and capital allocation policies”.

“Yangzijiang Financial will continue to sharpen its investment, wealth and fund management capabilities, while Yangzijiang Maritime, as a pure-play maritime investment platform, will leverage its proprietary pipeline and global network to capture opportunities across maritime cycles and deliver sustainable value to stakeholders,” he added.

Ren was appointed as YZJ Maritime’s director on Apr 28 and re-designated as its chairman and CEO on Oct 31.

Following its proposed listing, YZJ Maritime will be converted into a public company limited by shares. It will focus on investment holding and engage in maritime investments, ship agency, broking and financing services.

Since YZJ Maritime did not exist as a separate legal entity in the past, no standalone financial statements were prepared. For capital markets access and evaluation purposes, combined financial statements for the fiscal years ending Dec 31 in 2022, 2023 and 2024 have been prepared.

YZJ Financial ended S$0.01, or 0.9 per cent, lower at S$1.06 on Friday before the announcement.