First Sponsor raises S$244 million from oversubscribed rights issue

MAINBOARD-LISTED property developer First Sponsor Group on Wednesday (Sep 25) said it raised gross proceeds of about S$244 million from its recently concluded rights issue.

A total of 225,910,315 Series 3 convertible securities were available for subscription, but the rights issue was oversubscribed by 4.4 per cent as at its close on Sep 20.

The group in August proposed a renounceable and non-underwritten rights issue of perpetual convertible capital securities at S$1.08 apiece on the basis of one Series 3 convertible security for every five existing shares.

First Sponsor added that it intends to use net proceeds from the rights issue to fund expansion plans, and to strengthen its financial position and capital base.

It earlier said it plans to use 57.6 per cent of the net proceeds to finance its property development, property holding and/or property financing businesses.

Up to 42.4 per cent of the net proceeds may also be used to fund the proposed acquisition of stakes in a project company.

SEE ALSO

First Sponsor seeks to raise S$283.8 million in convertible perps issue

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The securities are expected to be listed and quoted on the mainboard from 9 am on Sep 30.

Shares of First Sponsor closed flat at S$1.08 on Wednesday, before the announcement.