SINGAPORE (June 2): Singapore Airlines (SIA) has announced that its rights issue has been fully subscribed by valid shareholders.

There were a mix of valid acceptances and excess applications, which amounted to a total of 119.5% of the 1.78 billion rights shares available under the rights issue.

The airline announced that it was undertaking a renounceable rights issue of new shares in the company on March 26, raising up to $15 billion eventually to help survive the Covid-19 crisis.

 In contrast, only 59.6% of SIA’s shareholders put in their applications for SIA’s mandatory convertible bonds (MCBs). This came up to around $2.08 billion in principal amount of rights MCBs.

According to SIA’s filings to SGX on June 1, most SIA directors have chosen not to exercise their rights MCBs.

As indicated in the fund-raising terms, Temasek Holdings, SIA’s largest shareholder, will undertake the balance of $1.41 billion of the unsubscribed rights MCBs.

A total of 6.2 million “nil-paid” rights for the rights shares, and 12.3 million “nil-paid rights” for the rights MCBs have been sold on the SGX-ST. Net proceeds from the sales will be paid to ineligible shareholders in proportion to their respective shareholdings as at the record date.

The rights shares are expected to be credited to investors’ securities accounts on or around June 8.

Singapore Airlines shares closed 23 cents higher, or 5.9% up, at $4.11 on Tuesday.

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