Hong Leong Asia: Rights issue fully subscribed at closing

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Hong Leong Asia said on Tuesday that its rights issue of 373.91 million new shares, priced at S$0.54 each, was fully subscribed, with net proceeds of around S$201.3 million.

It received valid acceptances of 282.85 million rights shares and excess applications for 91.06 million rights shares, Hong Leong Asia said in a filing to SGX after the market close on Tuesday.

The rights shares were on the basis of one rights share for every existing ordinary share in the company, it said.

Hong Leong Corp. Holdings (HLCH) will have a stake of around 75.2 percent in Hong Leong Asia after the rights issue, it said.

The net proceeds are earmarked to partially repay an acquisition loan, to construct a plant, to repay other loans and for general corporate purposes or for making strategic investments and/or acquisitions, it said.

The rights shares will be allotted and issued on or around 26 Octboer and are expected to be listed and quoted on SGX on or around 29 October, it said.

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