Darco Water Technologies
Darco Water Technologies. Company's website.

Darco Water Technologies said controlling shareholder Robert Stone will raise his stake in the water treatment specialist to 18.1 percent via share placement.

Darco is issuing 1.5 million shares at a placement price of S$0.60, representing about 2.62 percent of the existing issued share capital of the company.

The company will raise net proceeds of S$882,000 through share placement, which will be invested in public-private partnership water infrastructure projects.

Darco said it would use about 70 percent of the proceeds towards funding of new projects or investments where opportunities arise, with the remaining going towards the firm's working capital.

Darco said that Stone's share subscription is for investment purposes only and that he has "no intention of influencing the management, or exercising control over the company".

Last month, strategic investor Robert Wang Zhi purchased 29.5 percent stake in the company for up to S$19.7 million.

Shares in the company jumped as much as 2 percent to S$0.58 on the Singapore Exchange.