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First Sponsor’s S$147.6m rights issue oversubscribed

MAINBOARD-LISTED First Sponsor Group’s S$147.6 million rights issue was oversubscribed, the Hong Leong-linked property developer said on Thursday night.

Valid acceptances and excess applications were received for a total of 117.12 per cent of the available 113.6 million convertible securities with warrants, as at the close of the rights issue on May 24.

First Sponsor said on May 7 that it intends to use proceeds from the rights issue to fund its expansion plans.

Under the rights issue, shareholders get 3.98 per cent subordinated perpetual convertible securities at S$1.30 each. These perpetual securities may be exchanged for common shares at an initial conversion price of S$1.30 apiece.

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Each perp comes with a free detachable warrant, which may be converted directly to shares at S$1.30 apiece.

The company also has a bonus issue for shareholders to get one warrant for every 10 existing common shares held.

First Sponsor did not state the subscription rate for the bonus issue in Thursday's filing, but said that it will issue 79.2 million warrants under it. The bonus issue was for up to 79.5 million warrants, according to the May 7 offer information statement. It closed on May 6.

First Sponsor will issue on May 31 the convertible securities and warrants from both the rights issue and bonus issue. They are expected to be listed and quoted on the mainboard of the Singapore Exchange with effect from 9am on June 4.

First Sponsor’s key controlling shareholders are Hong Leong Group Singapore, through its shareholding interests in Millennium & Copthorne Hotels, and Tai Tak Estates Sendirian Berhad.

First Sponsor shares were trading flat at S$1.21 as at 11.40am on Friday.

Results of rights issue, dated May 30:

Offer information statement, dated May 7: