offerings-from-kreit-and-new-world-china-show-rights-issues-still-have-a-place

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 -- although since mid-September they have admittedly had to fight for the attention of both bankers and investors as a multitude of initial public offerings have stolen the headlines -- and several Taiwanese companies have boosted...

¬ Haymarket Media Limited. All rights reserved.

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 (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222