Pacific Andes shares hit by news of 4-for-5 rights issue

Singapore

SHARES in Pacific Andes Resources Development were sent reeling on Tuesday, falling 26 per cent to S$0.08 on news that the global frozen fish supplier has proposed to raise about S$192.3 million in net proceeds from an issue of some 3.83 billion rights shares at S$0.051 apiece. About 57.8 million shares changed hands with the stock going down as low as S$0.078.

In its pre-market announcement on Tuesday, Pacific Andes said that the proposed rights issue, on the basis of four rights shares for every five existing shares held, will be fully underwritten. The proposed rights shares represent about 80 per cent of the existing share capital.