SINGAPORE (EDGEPROP) - Listed company Koh Brothers Eco Engineering announced that leading Japanese construction firm Penta-Ocean is keen to invest and will subscribe for 810 million new ordinary shares of Koh Brothers Eco at the issue price of $0.047 per share.

Penta-Ocean specialises in coastal and waterfront projects, with marine and land civil engineering capabilities. Established in 1896, it is listed on the Tokyo Stock Exchange. It has a presence in Singapore for 56 years, and participated in several civil engineering projects locally, such as the reclamation in Jurong and Pasir Panjang, as well as the construction of Esplanade Theatres on the Bay and ION Orchard.

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Following the allotment and issuance of new shares, Penta-Ocean will hold between 25.06% and 28.84% of the enlarged issued and paid-up share capital of Koh Brothers Eco. The net proceeds will amount to around $36.87 million.

Koh Brothers Group is still the largest shareholder of Koh Brothers Eco, holding between 54.4% and 54.99% of the issued and paid up share capital.

“The private placement is in line with Koh Brothers Eco’s strategy to strengthen our financial position by increasing our capital base. This will provide the Group with additional resources to bid for more capital-intensive projects and other potential growth opportunities,” says Francis Koh, Koh Brothers Eco’s non-executive and non-independent chairman.