Mandarin Oriental rights issue flops in face of tech craze

Mandarin Oriental''s $150 million rights issue failed to get off, leaving parent company Jardine Matheson with rather more paper than it bargained for.

Singapore-based Jardine Matheson was left to pick up the pieces of associate Mandarin Oriental's latest fund-raising attempt, a $150 million rights issue, as independent investors shunned the latter's old economy paper, preferring to chase the high-tech hopefuls of the internet age.

The fund-raising comprised a one-for-five issue of new shares at S$0.510 that saw 75% take-up and a convertible bond issue - one $5,000 bond for every 48,000 existing shares held - which was 65% subscribed. The...

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