First Sponsor rights issue oversubscribed

MAINBOARD-listed First Sponsor Group's rights issue to raise up to S$162.2 million was oversubscribed by 25.9 per cent upon its close on Apr 12.

The one-for-four rights issue was of 3.98 per cent perpetual convertible capital securities at S$1.10 each.

Valid acceptances comprised 98.9 per cent of the available convertible securities.

An excess 1,628,800 convertible securities will be allotted to satisfy excess applications, with preference given to the rounding of odd lots. Directors and substantial shareholders with control or influence in the company's day-to-day affairs or the terms of the rights issue, or have representation on the board will rank last in priority for the rounding of odd lots and the allotment of excess convertible securities.

In its announcement of the rights issue on Feb 8, First Sponsor said that the exercise was undertaken "to provide it with the financial flexibility to fund its expansion plans".