singamas-launches-63-million-rights-issue

Singamas launches $63 million rights issue

Shares in the container manufacturer plummet on the news despite arrangements whereby the controlling shareholder is underwriting most of the issue.

Singamas Container Holdings, a Hong Kong-listed marine container manufacturer, yesterday launched a HK$492 million $63 million rights issue. The company is raising money to repay part of its bank loans, save interest expenses and generally strengthen its financial position.
 
The company will offer 1.4 billion new shares to existing shareholders at a subscription price of HK$0.35 per share, a 53.9% discount to the last traded price on February 26, prior to a suspension and a discount of 56.8% to the average closing price for the 10 consecutive trading days up to and including February 26.
 
By the close of trading yesterday, the company's shares were down by 38.16%. Shareholders are entitled...

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