Catalist-listed Advanced Systems Automation (ASA) on Friday said it would raise net proceeds of S$1.87 million via a placement of 100 million new shares at 1.89 Singapore cents apiece.

Some 50 million shares will be placed to Tan Sze Seng, a high net worth financial industry veteran another 40 million shares to Advance Opportunities Fund, a Cayman-Islands-based fund whose sole director Tan Choon Wee is acquainted with ASA chairman Michael Loh Soon Gnee through mutual business associates and the remaining 10 million to Tay Wee Kwang, who is a managing director of an engineering consultancy and advisory company here.

On completion of the issuance, the placement shares will represent 6.3 per cent of ASA's enlarged share capital. The placement price carries a 10 per cent discount to the weighted average price of 2.1 Singapore cents per share for trades done last Friday.

ASA plans to use the proceeds for general working capital purposes, such as payment for the purchase of materials, subcontract costs, general overheads, staff costs, and other operating expenses.