The largest shipping and logistics company listed in Singapore, Neptune Orient Lines NOL, yesterday launched a S$1.437 billion $996 million renounceable rights issue. The company, which is majority-owned by Temasek, intends to use the money to pay off debt and give its balance sheet a boost.
The fully underwritten deal consists of 1.1 billion rights shares being offered to existing shareholders at a ratio of three new shares for every four shares owned. The rights price is S$1.30 per share, which equals a 15% discount to Friday's closing price of S$1.53.
The rights shares come at a 9.2% discount to the theoretical ex-rights price Terp, which is far tighter than other Asian companies...
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