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Raffles Education to issue rights issue of up to 318.6m new shares for S$0.14 each

RAFFLES Education Corporation announced after trading hours on Thursday that it is proposing to undertake a renounceable non-underwritten rights issue of up to 318.6 million new ordinary shares in the company at an issue price of S$0.140 each in order to raise gross proceeds of up to approximately S$44.60 million.

This is on the basis of three rights shares for every 10 existing ordinary shares in the capital of the company.

The issue price per rights share of S$0.140 represents a discount of approximately 44 per cent to the closing price of S$0.25 per share on the SGX on Dec 18, 2017, being the date of this announcement. It is also a discount of approximately 37.78 per cent to the theoretical ex-rights price of approximately S$0.225 per share.

The company said its rationale for undertaking the rights issue is to strengthen the financial position and capital base of the group, to partially repay certain indebtedness of the group including the notes due May 2018 issued under the group's Multicurrency Medium Term Note Programme, and to raise proceeds for general corporate and working capital purposes.

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The company has appointed United Overseas Bank as the manager for the rights issue.