Stamford Land has proposed Tuesday a rights issue of 703.74 million new shares at S$0.34 each on the basis of nine rights shares for every 10 existing shares to raise net proceeds of around S$238.9 million.
The issue price of S$0.34 a rights share is a discount of around 29.2 percent to the S$0.48 closing price on Monday, and a discount of around 13.8 percent to the theoretical ex-rights price of S$0.41, Stamford Land said in a filing to SGX.
The net proceeds will be earmarked for the potential development of properties in Australia or Singapore, or the re-development of existing properties in Australia, including Stamford Plaza Brisbane and Sir Stamford at Circular Quay, asset enhancement of Stamford Grand Adelaide and/or Stamford Plaza Melbourne and other opportunistic real estate acquisitions which may be expected within the next 24 months, Stamford Land said in the statement.
“The rights Issue will provide all shareholders with the opportunity to participate in the growth and expansion of the group’s business from its strategic initiative,” while maintaining their equity interests, Stamford Land said.
The rights offer is non-underwritten, the filing said.
The undertaking shareholders, representing 45.9 percent of the rights shares, have given an irrevocable undertaking to subscribe for their full entitlement under the offer and to make excess applications for all of the rights shares which are not subscribed for after all valid and excess applications are met, the filing said.
“This reflects the undertaking shareholders’ confidence in the future plans and growth prospects of the group,” Stamford Land said.
The undertaking shareholders are Ow Chio Kian, his spouse Lim Siew Feng Katherine, Hai Sun Hup Group, Victoria Park (1976), which was formerly known as Maritime Properties, Ow Yew Heng and Kiersten Ow Yiling, the filing said.
UOB has been appointed as the lead manager of the rights issue, the filing said.