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Hong Lai Huat proposes to raise up to S$26.9 million via rights issue

HONG Lai Huat Group is proposing to undertake a renounceable non-underwritten rights issue to raise up to S$26.9 million to partly finance its second mixed-use development project in Phnom Penh.

It proposes to issue up to 295.91 million new ordinary shares on the basis of four rights shares for every three existing ordinary shares held by shareholders at an issue price of S$0.091 per rights share.

The issue price represents a discount of 36.4 per cent to the last transacted price of the shares on Dec 3.

It also represents a 19.7 per cent discount to the theoretical ex-rights price of S$0.113 per share.

In a minimum subscription scenario, the gross proceeds from the rights issue will be S$14.4 million, assuming that none of the entitled shareholders subscribe for their pro rata entitlements of rights shares and group chief executive Ong Bee Huat - who has given an irrevocable undertaking - subscribes for his pro rata entitlement as well as excess rights shares. In the maximum subscription scenario, the gross proceeds total S$26.9 million.

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Shares in Hong Lai Huat closed at 14.3 Singapore cents on Thursday, up 3.62 per cent or 0.5 cent from Wednesday.

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