Offerings from K-Reit and New World China show rights issues still have a place

Singapore's K-Reit seeks $444 million at a tight 11.8% discount to Terp, while Hong Kong-listed New World China is attempting to raise at least $630 million at a 29.2% discount to Terp.

As the global economic outlook has improved, investor sentiment towards equity issuance has seen a pickup as well and it has become easier for Asian companies to sell new shares at a reasonable discount. This means there is less need for rights issues, which were popular earlier in the year when a reluctance among investors left many companies with little choice but to tap existing shareholders for more capital.

In Hong Kong, top-up placements are now a regular feature --...

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