Frasers Property's rights issue not a clear win for all

FRASERS Property's latest rights issue will provide much needed cash to the listed entity, but its value to shareholders, existing and potential, is questionable.

The company's non-underwritten 37-for-100 rights issue aimed at raising net proceeds of up to S$1.28 billion is also lacking in specifics.

The fundraising exercise may be unsurprising given the group's gearing of 0.99 time at end-December, although the ratio would fall with the divestment of its 63.1 per cent stake in Asia RetailFund to Frasers Centrepoint Trust.