Hiap Seng cancels rights issue due to falling share price

MECHANICAL engineering firm Hiap Seng is cancelling its proposed rights issue due to unfavourable market conditions and its deteriorating share price, the Mainboard-listed company said in a bourse filing on Friday. 

Specifically, Hiap Seng's share price has fallen below the S$0.05 issue price of the rights, the company noted. The share price dipped below S$0.05 in early September, and has since fallen another 40 per cent. 

The company had planned to raise about S$7.6 million in working capital via the issue of up to 151.9 million rights shares, on the basis of one rights share for every two existing ordinary shares. 

Hiap Seng will consider other fundraising options and keep shareholders updated, the company said. 

Hiap Seng shares closed flat at S$0.03 on Friday.