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First Sponsor almost fully redeems convertible perps ahead of proposed rights issue

MAINBOARD-LISTED First Sponsor Group said on Tuesday night that it has converted into shares and cancelled S$159.6 million or 98.4 per cent in initial aggregate principal amount of its Series 1 perpetual convertible capital securities.

This was after it had converted and cancelled an additional S$12.8 million or 7.9 per cent of the initial aggregate principal amount of the 3.89 per cent securities between April 8 and April 16 of this year.

The Singapore-based property developer with development projects in China and the Netherlands intends to redeem all of the outstanding Series 1 securities after the completion of its proposed rights issue and bonus issue of warrants. (see amendment note)

First Sponsor on March 25 proposed to issue Series 2 perpetual convertible capital securities - with free detachable warrants that may be converted directly into shares - along with a bonus issue to raise up to S$399.3 million.

The proposed exercises are subject to shareholder approval at an annual general meeting on April 24.

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

First Sponsor shares were trading flat at S$1.28 on Wednesday as at 9.18am.

Amendment note: An earlier version of this article incorrectly stated that First Sponsor is a China-based property developer when in fact it is a Singapore-based property developer with development projects in China and the Netherlands. The article has been revised to reflect this. 

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