SINGAPORE (Oct 9): Shares in KOP are up 21.8% to 9.5 cents with 11.6 million units traded.

KOP, the property developer and investment company, announced on Saturday that Sam Goi Seng Hui is subscribing up to 221.6 million shares in KOP at 5 cents each to raise up to $11.1 million.

The placement price is 3.8% lower than the stock's Friday close of 5.2 cents.

Sam Goi is the executive chairman of Tee Yih Jia Group, a global food and beverage manufacturer, and of GSH Corporation, which has real estate interests.

He has a net worth of US$2.1 billion ($2.9 billion) as at August, according to Forbes magazine.

“The Placee, Mr. Goi, is a successful businessman... Apart from these core businesses, Mr Goi has strategic investments in listed and private entities spanning numerous industries, such as food and beverage, consumer essentials, recycling, distribution and logistics,” says KOP.

KOP says the placement price is at a 4.76% discount to the volume weighted average price of 5.26 cents on Friday.

On completion of the deal, the placement shares will represent 20% of the enlarged share capital of KOP.

KOP says the net proceeds from the subscription wil be used to support its business development and business expansion.

The proposed placement will not have any effect of transferring a controlling interest in the company, it adds, as the controlling shareholders currently hold a 59.35% stake in the company.

Year to date, shares in KOP are down 20%, giving it a market share of $70 million.

This article, written by PC Lee, first appeared in The Edge Singapore.