Jubilee plans rights cum warrants issue to raise S$15m

CATALIST-LISTED precision manufacturer Jubilee Industries Holdings is aiming to raise S$15.03 million by offering its shareholders one rights share with one detachable warrant for every two shares held.

Each renounceable rights share will be priced at 4.5 Singapore cents, while each warrant carries the right to subscribe for one new common share at 4.5 Singapore cents. The issue price of the rights shares and the warrant strike price represent a 4.3 per cent discount to Jubilee's closing price of 4.7 Singapore cents on Oct 11.

Existing shareholders Accrelist Ltd and Summit Planners Advisory Group, who hold around 64.75 per cent of existing share capital, have agreed to fully subscribe for their entitlements with Accrelist taking 15 per cent of any excess rights shares and Summit Planners 85 per cent.

At the completion of the exercise, including the exercise of warrants, Accrelist's shareholding could be between 64.73 per cent and 67.38 per cent, while Summit Planners' stake could be between 0.015 per cent and 15 per cent.

Jubilee will allocate 40 per cent of the proceeds for working capital, 30 per cent to merger and acquisition activities, and the remaining 30 per cent to machine capacity expansion.

It is expanding its operations due to a surge in order volume from SK Hynix, a large computer chipmaker and one of the company's major principals.

"The funds raised could strengthen our financial position, allowing us to tap new growth opportunities," Jubilee non-executive chairman Terence Tea said. "Irrevocable undertaking by undertaking shareholders reflects their confidence in the prospects of Jubilee. In addition to rewarding our shareholders, issuance of free warrants could also provide our shareholders an opportunity to participate in the future growth of Jubilee."