KUALA LUMPUR (May 8): Aaron Chen Khai Voon is subscribing to a 20% stake in Seal Incorporated Bhd via a RM16.2 million placement exercise, making the low-profile businessman the largest shareholder in the property developer.

Seal will be placing out 62.29 million shares to Chen at an issue price of 26 sen per share, which marks a 21% discount to the stock’s Monday (May 8) closing price of 33 sen.

The stock closed up 2.5 sen or 8.2%, giving it a market capitalisation of RM104.72 million.

AmInvestment Bank Bhd has been appointed as the principal adviser and placement agent, while Astramina Advisory Sdn Bhd has been appointed as financial adviser.

Proceeds raised from the placement will be mainly utilised for acquisition of new viable business.

“The group has been on the look-out for businesses involved in renewable energy and its related activities, such as those involved in engineering, procurement, construction and commissioning (EPCC) for solar and related renewable energy activities,” said Seal in a stock exchange filing on Monday.

Seal said the proposed placement provides an opportunity to rope in Chen as a strategic investor, who is widely known for his ventures into PapaRich restaurant chain and Genetec Technology Bhd, an automated industrial systems and equipment maker for sectors like electric vehicle energy storage, consumer goods and healthcare.

“Given his past experience and track record, the introduction of the subscriber (Chen) as a strategic investor of the company would allow the company to tap and leverage on the subscriber’s corporate network and experience, as the board and management of the company continue to realign and expand the group’s business,” it said.

Seal’s current largest shareholders are Datin Seri Tan Guik Lan with 14.38%, followed by her son Koay Shean Loong with 7.99%.

Following the placement to Chen, Tan’s shareholdings will be diluted to 11.98%, while Koay’s stake will be reduced to 6.66%.

Chen, 62, would in turn own 16.67% of Seal’s enlarged issued share capital after the placement.

The placement came shortly after Seal completed a 10% private placement in March this year, raising RM7.08 million mainly earmarked for working capital.

It is worth noting that Chen’s sibling, Chen Siew Chong @ Chin Siew Chong, has also subscribed to Seal’s previous private placement, owning 14.31 million shares equivalent to a 4.6% stake as at April 12 this year.