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We need to talk about liquidity

Communication is critical when companies need to recapitalise. How they do that, with their shareholders, will be a critical factor in securing long-term viability.

As demonstrated by SIA, a positive shareholder vote and the announcement of a successful, oversubscribed rights issue is a ringing endorsement of a company's management and of its strategy to secure the long-term viability of the business.

SEMBMARINE announced on Sept 7 that it had received 90.2 per cent of valid acceptances for the nearly 10.5 billion shares available under the rights issue it launched in June.

That SembMarine's rights issue was undersubscribed illustrates the challenge Singapore's public companies are...

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