Sanli Environmental has raised gross proceeds of $4 million from placing out 33.3 million shares at 12 cents each, drawing money from Lion Global Investors managing on behalf of its clients, and Asdew Acquisitions.

Shares of Sanli Environmental rose 4.8% on the news.

The funds raised will be used mainly to fund the execution of ongoing engineering, procurement and construction projects. A smaller portion will be used to pay down debt.

With the placement, arranged by SAC Capital, its share base will increase by around one-eighth to more than 265 million shares.

CEO Sim Hock Heng notes that this is Sanli's first placement exercise since the company was listed in 2017.

"It represents a meaningful milestone for the group and we are heartened by the strong vote of confidence from investors in our business model and growth potential," he says.

In a separate announcement, the company announced that it has won a $105.3 million contract from PUB for mechanical, electrical, instrumentation, control, automation works for the upcoming NEWater plant located within the Tuas Water Reclamation Plant (WRP).

This brings its order book to $333.9 million.

The company expects this new project to have a positive impact on its net tangible assets and earnings per share throughout the duration of the project.