Singapore-listed offshore services provider Vallianz Holdings has secured USD10 million from capital investment company United Orient Capital (UOC) to finance its expanding business operations.
According to its filing to the Singapore Exchange, Vallianz will issue 10 million convertible preference shares at an issue price of USD1 each to UOC under the subscription deed.
Vallianz will then use the net proceeds of USD9.5 million from the proposed subscription for fleet expansion and general working capital.
Yeo Wee Yap, executive director of UOC, believes that the fund will help Vallianz to “realise its expansion ambitions and development plans”, and will position the company to “emerge stronger from the industry’s current downturn”.
“We appreciate this investment commitment by UOC. Despite the uncertain business environment in the offshore oil and gas industry, we are continuing to expand our operations and remain positive of the [Vallianz] group’s long-term outlook. UOC’s investment signals its confidence in Vallianz’s business model, growth, and industry prospects,” said Ling Yong Wah, CEO of Vallianz, reciprocating the faith shown by UOC in the investment.