dbs-rights-issue-sets-scene-for-others-to-follow

DBS rights issue sets scene for others to follow

A generous discount and modest exposure to the financial crisis create strong interest, resulting in Singapore's first rights issue this year being 118% covered.

By Anette Jönsson

January 28, 2009

DBS Group has announced that its S$4.1 billion $2.7 billion rights issue was 118.8% subscribed, including excess applications. The news confirms the success of DBS's fundraising exercise at a time when many of its financial peers in Europe and the US have been forced to seek bailout capital from their respective governments.

The support for DBSÆs rights issue û it received close to 27,500 acceptances and was 98.9% covered even without excess applications û was evident throughout the three-week offering period with the share price holding well above the rights price from beginning to end. When the offer closed on January 20, the share price was 3.5% higher than the theoretical ex-rights price...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222