Shares in United Engineers, a Singapore-listed property developer, have slid more than 14% since its announcement on Tuesday night that it is planning a rights issue.
The company is expected to raise at least S$463.5 million $369 million from the fully underwritten deal, having set the subscription price at a 47.6% discount to Monday’s close.
Existing shareholders will have the right to buy one new share for every one existing share. This prompted Maybank Kim Eng to lower its rating on the company to “sell” from “buy”, saying “essentially, this exercise will be dilutive to current shareholders”.
Markets continue to deteriorate, with the Nikkei...