Spice i2i (M09.SG) tumbles 21.7% to $0.090 on resuming trade after it announces a $151 million one-for-one rights issue at an issue price of $0.055 per share; it also announces its second acquisition in as many months, with the purchase of Indonesia’s Affinity Group, the owner and manager of Selular Group, for US$175 million ($224.3 million). 

“The markets basically don’t like the rights issue, and while (Chairman Dr. Modi is) trying to build his business, and you can see the direction he’s taking is positive, I think the transformation is taking a bit of time,” says a trader at a local brokerage. 

“He’s aiming big and has had success in the past, but every time you call for rights, especially now the market mood is a bit iffy, people don’t feel happy, and he did a rights issue not too long ago,” the trader says, adding "he seems to be buying quite well, but the proof of the pudding is in the eating." 

 

Orderbook suggests $0.085 as support.