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Tigerair down after releasing results of rights issue

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Tiger Airways slumped 3.7 per cent on Monday morning, following the results announcement of its rights issue.

TIGER Airways slumped 3.7 per cent on Monday morning, following the results announcement of its rights issue.

The stock was down one cent at S$0.26.

The renounceable non-underwritten rights issue, which closed on Dec 29, 2014, was fully subscribed, Tigerair said. Valid acceptances and excess applications received represented 156.7 per cent of the 1,147,102,770 rights shares available under the rights issue.

Each rights share was issued at S$0.20.

This includes an aggregate of 1,147,112,005 rights shares accepted or applied by Singapore Airlines (SIA), its majority shareholder.

SIA now owns 55.8 per cent of Tigerair's issued share capital, unchanged after the rights issuance.

In December, SIA had converted its perpetual convertible capital securities holdings in Tigerair into ordinary shares, raising its stake from 40 per cent.

The rights shares are expected to be issued on Jan 7 this year, and listed and quoted on the mainboard of the Singapore Exchange the following day at 9am.

This follows an October 2014 announcement by the company to undertake a renounceable non-underwritten rights issue to raise gross proceeds of up to about S$234 million.

On Monday morning, after easing at market opening, SIA's shares gained 0.35 per cent, trading at S$11.59.